This paper proposes a second-order harmonic reduction technique and DC-link voltage sensorless control for grid-connected PV systems. In a grid-connected single-phase system, inverters create a harmonic at twice the fundamental frequency. A ripple component unsettles the operating points of the PV array and deteriorates the operation of the maximum power point tracking (MPPT) technique. A new feed-forward compensation technique using a PR controller for ripple reduction is proposed. The proposed algorithm is advantageous in that additional devices are not required and complex calculations are unnecessary. Therefore, this method is cost-effective and simple to implement. In an inverter, a DC-link voltage sensor is essential for power conversion. A sensor fault is detected when there is an error between the sensed and estimated values, which are obtained from a DC-link voltage sensorless algorithm. Fault-tolerant control is achieved by using the estimated values. A deadbeat current controller is used to meet the dynamic characteristic of the proposed algorithm. The proposed algorithms are validated by simulation and experiment results.