The fault detection technique of the grid-connected photovoltaic system using wavelet transform has been suggested in this paper. The additional hardware and sensors are required to detect the inverter failure in the conventional method, and it has the disadvantage of high cost and re-design problem if the inverter specification has been changed. The suggested method used the inverter voltage and current waveform to detect the failure and the location by the wavelet coefficients variations. The prompt and accurate diagnostic function is possible using the normalized standard deviation method. The merit of the proposed method is the simple calculation and precise diagnostic capabilities of the fault detection. The computer simulation is performed and the experimental result verifies the validity of the proposed method.