A multiple dc sources bi-directional energy converter includes a plurality of direct current (DC) power sources; one alternating current (AC) power source; at least one stacked alternating current (AC) phase, each stacked alternating current (AC) phase having at least two or more full bridge converters, each respectively coupled to one of the direct current power sources, each full bridge converter having an inductor electrically coupled thereto; and a local controller coupled to each full bridge converter controlling the firing sequence of the switching devices in said full bridge converter to generate an approximately nearly sinusoidal voltage waveform when operated as a voltage source inverter in one direction or generate an approximately nearly constant direct current (DC) output when operated as a full-wave active rectifier in the opposite direction.