Highly reliable and flexible control is required for distributed generation (DG) to efficiently connect to the grid. Smart inverters play a key role in the control and integration of DG into the power grid and provide advanced functionalities. In this paper, an energy-based single-phase voltage-source smart inverter (SPV-SSI) of 5 kVA is designed and analyzed in detail. SPV-SSI is capable of supplying the power to local load and the utility load up to the rated capacity of the inverter, injecting the power into the grid, storing the energy in lead-acid battery bank, controlling the voltage at the point of common coupling (PCC) during voltage sags or faults, and making decisions on real-time pricing information obtained from the utility grid through advanced metering. The complete design of smart inverter in dq frame, bi-directional DC-DC buck-boost converter, IEEE standard 1547 based islanding and recloser, and static synchronous compensator (STATCOM) functionalities is presented in this paper. Moreover, adaptive controllers, i.e., fuzzy proportional-integral (F-PI) controller and fuzzy-sliding mode controller (F-SMC) are designed. The performances of F-PI controller and F-SMC are superior, stable, and robust compared with those of conventionally tuned PI controllers for voltage control loop (islanded mode) and current control loop (grid-connected mode).