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A Surge is an increase in voltage on the utility supply side of the sensitive electronic equipment. A Surge can occur due to lightning or when other large loads, such as motors and transformers that share the same utility feed as the sensitive equipment, de-energizes resulting in an excess of voltage on the same line that feeds your sensitive equipment. Without any surge protection to your sensitive equipment, it is in jeopardy of being damaged or destroyed completely from such an event. On the other hand by having a UPS InLine with your sensitive equipment it offers protection from such an event as a Surge. When a Surge occurs on the input side of the UPS, the Rectifier has a built in tolerance to withstand such a deviation of voltage. It accepts the Surge and is still able to rectify the AC into DC, as expected, doing its job.
If the Surge exceeds the tolerance of the UPS’s input the Rectifier it will not accept it and shut down until the input voltage returns within tolerance of the Rectifier. During this time the Inverter section will use the Battery for its source of DC to convert into AC supplying the load. Whether the Inverter receives DC either from the Rectifier or Battery, the result is a steady 120 VAC(1Φ), 208 VAC or 480 VAC(3Φ) output feeding your sensitive equipment.