From Wikipedia:
Sine wave inverters with more than three steps in the wave output are more complex and have significantly higher cost than a modified sine wave, with only three steps, or square wave, (one step), types of the same power handling. Switch-mode power supply (SMPS) devices, such as personal computers or DVD players, function on quality modified sine wave power. AC motors directly operated on non-sinusoidal power may produce extra heat, may have different speed-torque characteristics, or may produce more audible noise than when running on sinusoidal power.
From me:
Surge wattage can be up to 4 to 5x running wattage.