Inverters convert DC power into AC power through waves called either sine waves or modified sine waves. Sine waves are the waves that are typically found in power from a power plant. Modified sine waves are made to simulate sine waves. Inverters with modified sine waves work well for backup power in houses and are much less expensive. Although there are several types of inverters, all standard inverters use only one switch, or in other Words, one power circuit.
Multilevel inverters are a a source of high power, often used in industrial applications and can use either sine or modified sine waves. Instead of using one converter to convert an AC current into a DC current, a multilevel inverter uses a series of semiconductor power converters (usually two to three) thus generating higher voltage. While with an inverter you would transfer energy with the flip of one switch, with a multilevel inverter you would have to flip several switches, each switch requiring a circuit. These multiple switches and circuits usually make multilevel inverters more expensive than inverters.
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