If that genny has previously sat around a bit it may well have old fuel-turned to gum in the carb jets, making the engine run lean . a lean engine will surge a bit then give up long before giving you full power. I bought a little mitsi generator of trapme years ago and it ran lean as all hell (with a light green slime throughout the carb) doing the same as yours not handling half its rated load .took lots of carb cleaner and fuel set condtioner to sort it but now it handles load near to its rated max (2400w from memory). a quick check would be to start your genny up and after a couple of minutes see if its happy to have a bit of choke given to it - if so good chance its got slime in the carb. if not as others have said its too pathetic...
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