Abstract: A system and method for operating an inverter to maximize an overall efficiency of a power system is disclosed. A power system includes an inverter having an arrangement of switching devices that are selectively operable in On and Off states to invert a DC output to an AC output having controlled current and voltage. A controller selectively controls operation of the arrangement of switching devices via a discontinuous pulse width modulation (DPWM) scheme, so as to regulate an average voltage of the AC output. In controlling operation of the arrangement of switching devices via the DPWM scheme, the controller is programmed to generate a DPWM reference waveform having an initial phase angle, determine a system efficiency of the power system during operation, calculate an optimal phase angle for the DPWM reference waveform based on the determined system efficiency, and generate a DPWM reference waveform having the calculated optimal phase angle.