A 3-level T-type neutral point clamped (NPC) inverter/rectifier is disclosed in which neutral point clamping is dynamically enabled/disabled responsive to load, e.g. enabled at low load for operation in a first mode as a 3-level inverter/rectifier and disabled at high/peak load for operation in a second mode as a 2-level inverter/rectifier. When the neutral clamping leg is enabled only under low load and low current, middle switches S2 and S3 can be smaller, lower cost devices with a lower current rating. Si, SiC, GaN and hybrid implementations provide options to optimize efficiency for specific load ratios and applications. For reduced switching losses and enhanced performance of inverters based on Si-IGBT power switches, a hybrid implementation of the dual-mode T-type NPC inverter is proposed, wherein switches S1 and S4 comprise Si-IGBTs and switches S2 and S3 of the neutral clamping leg comprise GaN HEMTs. Applications include electric vehicle traction inverters.