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In recent years, researchers have proposed transformerless solutions for connecting renewable-energy power plants to the grid. Apart from lack of efficiency and increased cost and weight of the transformer, one of the reasons is the dc input current that causes transformer saturation. The purpose of this paper is the development of a finite-element computational tool that is going to aid transformer manufacturers in designing distribution transformers specifically for the renewable-energy market. It is based on a generalized macroscopic representation of electrical steels used in the transformer manufacturing industry that enables the accurate evaluation of electromagnetic field distribution of transformer cores under heavily saturated conditions. Its advantages over conventional formulations include numerical stability, numerical accuracy, and reduction of iterations of the Newton–Raphson method. An experimental verification of the proposed method is carried out. [ABSTRACT FROM PUBLISHER]