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Contact SupplierVFD manufacturers’ installation recommendations aside, how much voltage can a motor’s winding insulation really tolerate? The winding insulation system on existing general purpose motors may generally withstand pulses of 1000 V, which is totally inadequate for IGBT drives on 480 V systems. If the ac input voltage to the VFD is 240 V or less, the dc bus voltage is kept low and the magnitude of these “reflected waves” generally is not an issue. However, with higher motor horsepower, these lower utilization voltages are not always feasible. If the ac input voltage is 480 V with possible higher transient overvoltage, "inverter duty rated" motors become an option. But what is an "inverter duty rated” motor? The definition varies depending on whom you ask. NEMA MG1 Part 30 specifies a peak of 1000 V at 2 microseconds rise time, which is OK for SCR and BJT drives but definitely not for IGBT drives on 480 V systems.
BUT, most any 3 phase input VFD unit built after ~ 1996 is capable of operating on single phase input (be careful for the exceptions) with an appropriate "derating" of the drive. Rule of thumb - derate by 12. A 5HP VFD fed by single phase power will be suitable for running a 5 HP 3 phase motor. Depends on the manufacture but most offer a Micro line and they are small over a wide HP range. I remember the first VFD I saw in ~1976 had to be lifted with a fork truck and it was only 2 HP. I have a 3 HP unit I can easily hold in my hand and the packages will continue to get smaller I'm sure.
VFDs are used to replace three phase service when only single phase is available. But VFDs can do lots more than just get you three-phase. There are cases where you will need three phase input to a VFD but these are super advanced and I will not get into these here.