With fossil energy reducing year by year, more and more attention to the new energy sources greatly promotes the development of the distributed power generation system, especially the low-power photovoltaic system. However, the power injected into the single-phase grid is time-varying, an electrolytic capacitor with large bulk should be paralleled with PV to balance the input and output power ripple. But the electrolytic capacitor has a very short lifetime, which could shorten the whole inverter’s lifetime. In this paper, the operational principle of the power decoupling based microinverter considering parasitic parameters is proposed, in which a film capacitor with small capacitance value replaces the electrolytic capacitor to improve the lifetime of the inverter. Further, the operating mode of the transformer and the decoupling capability is analyzed, and obtains the reasons affecting the inverter steady-state performance. Finally, the simulation and experiment validation of the proposed microinverter have been accomplished. Base on the analysis method proposed in this paper, a more accurate device selection can be provided for industrial design.