Breakers in main (FPE) wires removed (from breaker) and connected in main then feed to generator. Is this acceptable and are the wires properly protected?


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Yes, that is a common practice. The generator panel has effectively become a transfer switch/remote (“sub”) panel that is now handling the overcurrent protection for those circuits.
I am not “happy” with how those NM cables are coming in through the top of the FP (bundled), and I can’t tell what the panel on the left is, but from what I can see, I can’t notice any glaring issues.
Seeing as testing generators is not a part of an HI SOP (not for me, anyway), this would be an easy out for you to defer to a sparky if you are not comfortable with this setup.

Something along the lines that “testing standby power systems is outside the scope of the inspection – a review and testing by a qualified contractor is recommended.”

Here is the sub (remote distribution) (a few issues there)

Thanks for the reply.

What is required to properly inspector Generator systems??

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A few things off the top of my head for someone who would be inspecting a stationery backup generator:

An assessment of the current mechanical condition
An assessment of whether the maintenance was done on schedule
If there is an automatic transfer switch, to see whether the generator starts on its own after the loss of the main power, and how effortlessly/quickly;
For a manual switch, manually to test starting and cutting over to the backup power
To re-check the load calcs to see if the generator was initially sized adequately.
To check the power quality (possibly), just to see if the alternator is operating within specs.
To check the condition of the fuel supply system, if separate from the genny (fuel tanks / natural gas or propane lines)
If equipped with a self-testing feature (where it starts once a week or so to test itself) to see if that is working as intended, if possible.
There may be more, but that’s all that comes to mind (I’ve edited this post to add stuff)
Others here may be able to add to my list.
All in all, I would defer any standby generator installations, unless it’s a shiny new installation within the first year of operation. There is just too much involved, based on what you can see from my list above.
Most HI’s that I’ve met hold that opinion, but you of course may do as you choose.

Dave, i was in the standby generator business before doing home inspections. I will be happy to answer any question any time for you.

In some applications the generator is just replacing the power coming in from the meter. Checking wiring, grounding, pretty much everything is basically the same.

Yours looks like the generator transfer switch is only running some selected circuits, not the entire house. The amperage rating of the switch will just need to match the load imposed on it from what it is feeding.

Careful when testing if it’s not automatic. There is usually a delay before transferring power, to let the engine come to rated speed, and could cause problems with computers, clocks, alarm systems, etc. that will need to be re set. Most response times are anywhere from 3 to 7 seconds.