Variable step size maximum power point trackers (MPPTs) are widely used in photovoltaic (PV) systems to extract the peak array power which depends on solar irradiation and array temperature. One essential factor which judges system dynamics and steady state performances is the scaling factor (N), which is used to update the controlling equation in the tracking algorithm to determine a new duty cycle. This paper proposes a novel stability study of variable step size incremental resistance maximum power point tracking (INR MPPT). The main contribution of this analysis appears when developing the overall small signal model of the PV system. Therefore, by using linear control theory, the boundary value of the scaling factor can be determined. The theoretical analysis and the design principle of the proposed stability analysis have been validated using MATLAB simulations, and experimentally using a fixed point digital signal processor (TMS320F2808).