This paper describes the operation principle and advantages of the hybrid three-phase seven-level cascaded H-bridge (CHB) inverter. The hybrid inverter consisted of Si-IGBTs and SiC-MOSFETs can be used for high frequency modulation due to considerably low switching losses of SiC-MOSFETs. The Si-IGBTs are switched under fundamental frequency to minimize the switching losses. The lower power loss and low total harmonic distortion (THD) makes the inverter attractive for industry. Relatively low cost is reached, since only one third of the modules are SiC-MOSFETs, while others are cheaper Si-IGBTs. The hybrid CHB inverter can be used in both high and low speed motor drives. The conducted experiments verify its application in the industry.