Both types of inverters will provide power to AC appliances, however, Pure Sine is high quality equal to (or better than) the power in your home. Modified sine wave power is a simpler form of power and is adequate for simple electronics, but may damage more complex ones.

Inverters convert stored direct current(DC) power in your batteries into alternating power (AC) power, like the kind you get in your home, so you can run your electrical appliances wherever you are. There are two types of inverters. Here’s a basic guide to help you choose the right one for your needs:
Modified sine wave inverters are very affordable, all-purpose inverters. Using a more basic form of technology than pure sine wave inverters, they produce power that is perfectly adequate for powering simple electronics. Use modified sine wave inverters to provide power for your less sensitive appliances like phone chargers, heaters, and air conditioners. Modified inverters are best suited for resistive loads which don’t have a start-up surge.
Pure sine wave inverters use more sophisticated technology to protect even the most sensitive electronics. Pure sine wave inverters produce power which equals – or is better than – the power in your home. Appliances that may not function properly, or which may be permanently damaged, without pure, smooth power will be safe with pure sine inverters. Use these inverters for televisions, laptops, digital microwaves, fridges, and other sensitive electronic equipment. Pure Sine inverters can power just about any AC appliance without the risk of damage.
The following video illustrates the technical difference between pure sine wave & modified sine wave inverters. It should be noted that some applications only require a modified sine wave, so it may not be necessary to spend that extra amount on a pure sine wave.
Modified sine wave vs. pure sine wave
Inverter Comparison
In conclusion, one would find modified inverters in small UPS systems
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