Simulated power outage went fine. The inverter kicked in. After turning the power back on the inverter went to bulk/absorption charge mode as it should. I'll report if it goes back into its endless float mode afterwards.
Found this online which is the same as in my manual.
http://www.xantrex.com/web/id/1042/docserve.asp
Search mode is basically the same as invert mode with energy saving function correct?
INVERT Mode
When the unit is in INVERT mode and it detects no AC
power available at its input plug, it will take DC power
from the battery and inverts it to AC power. That AC
power is then routed to the AC output receptacles to
power the AC loads connected to it. The duration of time
the unit can invert power is directly related to the size of
the battery (or battery bank).
To run the unit in ?INVERT? mode, move the slide switch
to INVERT on the control panel.
SEARCH Mode
To conserve battery power when an input source of AC
voltage is not available (as during a grid failure), the
SRCH mode can be selected. In this mode, the unit
checks the AC output circuit to see if a load has been
turned ON. If it detects a load, the unit switches to full
output power to operate the load. When the load is
switched OFF, the unit resumes its sleep mode and
continues to monitor the output circuit.
To run the unit in SEARCH Mode, move the slide switch
on the control panel to the SEARCH position.
The unit is now set to switch OFF the AC output during a
grid failure until the minimum load requirements are
met.