In India the demand of electric power is increasing rapidly, at present the maximum generation of electric power is based on non-renewable energy sources. In future there lies the use of renewable energy resources to satisfy increasing power demand and needs, among all renewable energy sources solar energy is most easily available and most comfortably used. For utilizing solar energy for generation of electric power solar cell or solar panel is mostly used. Available power from solar cell is DC in nature, but for utilization of this power for domestic purpose, it is needed to be converted in to AC. Inverter is the power electronic modulator that is used for this purpose. Multilevel cascade type inverter which intake multiple DC sources and gives combined AC output for desired voltage and frequency. The project is mainly focused on the development of single phase cascaded type multilevel inverter for domestic application using solar energy and elimination of harmonic distortion and its effects. Selective Harmonics Elimination Stepped Wave forms [SHESW] method can be implemented to eliminate the lower order harmonics. The topology which we will use is suitable for any number of levels. A standard cascade multilevel inverter requires “n” DC sources for “2n+1”level. Fundamental switching scheme can be used to power semiconductor switches in the inverter to produce a nearly sinusoidal output. To eliminate further more harmonics, harmonic filter can be added in the circuit which can eliminate particular order of harmonic. In this project simulation of single phase seven level cascaded multilevel inverter with selected switching angles and with harmonic filter is done using MATLAB SIMULINK software. The output of simulation contains 5.30017% harmonics that means we have reached the output voltage nearer to the sinusoidal waveforms at least in software simulation.