A new current loop control system method is proposed for a single-phase grid-tie power conditioning system that can be used under a standalone or a grid-tie mode. This type of inverter utilizes an inductor-capacitor-inductor (LCL) filter as the interface in between inverter and the utility grid. The first set of inductor-capacitor (LC) can be used in the standalone mode, and the complete LCL can be used for the grid-tie mode. A new admittance compensation technique is proposed for the controller design to avoid low stability margin while maintaining sufficient gain at the fundamental frequency. The proposed current loop controller system and admittance compensation technique have been simulated and tested. Simulation results indicate that without the admittance path compensation, the current loop controller output duty cycle is largely offset by an undesired admittance path. At the initial simulation cycle, the power flow may be erratically fed back to the inverter causing catastrophic failure. With admittance path compensation, the output power shows a steady-state offset that matches the design value. Experimental results show that the inverter is capable of both a standalone and a grid-tie connection mode using the LCL filter configuration.