This paper studies an energy storage system based on a three-level DC-DC converter and a gridconnected neutral-point-clamped inverter. The main advantages of this multilevel power conversion system are highlighted and the neutral-point voltage oscillations are analyzed. A modulation algorithm for the DC-DC converter which includes the neutral-point voltage balance control is used to improve the voltage balancing capabilities of the inverter. Some figures are presented to show the extended operating areas without neutral-point voltage oscillations thanks to the contribution of the DC-DC converter to the voltage balance. Finally, some guidelines to size the DC-link capacitors are given for a practical application.