There are several characteristics of wire insulation that describe its performance when exposed to voltage stress.
The nominal maximum applied voltage (either RMS AC at 50-60HZ or DC) is the one which dominates the NEC use descriptions.
But another is the response of insulation to rapid changes in applied voltage (dV/dt), and the output of a VFD is high voltage DC pulses with much faster rise times than normal AC power. In addition to that the possibility of standing waves on VFD output wires can cause even the pulse voltages seen to be up to twice as high as the nominal DC bus voltage in the VFD. So that characteristic becomes important.
Yet another characteristic is how the insulation responds to repeated overvoltage voltage stress. It can degrade slowly or fail catastrophically.
Taking all of these (and probably others) into consideration, there are those who feel that THHW is not the best choice for VFD output wiring.
All that, plus this bag of chips;
Thermoset plastic PVC insulation, which is what is on THHN (
Thermoset
High
Heat
Nylon jacketed), is injected as a liquid into a heated mold as the wire passes through and the heat sets it up to a more solid form. But as a liquid flowing through the wire making machine it has bubbles in it. Those bubbles are generally microscopic and in a standard sine wave environment are basically irrelevant. But in the VFD output conditions GD just described so well, those bubbles become weaknesses in the insulation that loom large under the higher "corona discharge" stresses that can be created by the VFD PWM output and cable capacitance. Secondly, the wire can move around a little inside the mold before the PVC sets up, so some areas of the wire may end up with thinner insulation than others and again, no big deal on sine wave power, but not good with PWM. The better type of insulation is Cross Linked Polyethylene or "XLPE", which is what you find in RHH/RHW-2 or now more commonly, XHHW. The "X" is for
XLPE ; then
High
Heat
Water resistant. XLPE is basically heat shrink tubing that the wire is inserted into, then when heated it shrinks onto it. No bubbles in the material, better resistance to corona discharge.
No need to run out and yank your THHN, but we should all cease using it now on VFD
outputs (input cables are not subjected to the same issues). I've been involved in dozens of somewhat spectacular cable insulation failures over the last 6 years or so, it's getting worse. I believe that's partly because as VFDs get smaller/faster/cheaper, one of the reasons is that they have reduced the switching losses in the transistors by using faster transistors, meaning the turn-on time is now MUCH faster, buy a factor of more than 2, than the previous generation, which was already faster than it's predecessor. So VFD cables that have been installed and running fine with THHN for a decode or more were not being subjected to the same thing that cables are seeing from the latest generation of VFDs. THHN is beyond it's usefulness now.