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Originally Posted by DickR

If the transfer switch is wired up to take power from either the service line coming to the house or the generator and feed power from whichever is providing the juice to the main breaker panel, then the main switch in that distribution panel is downstream of the transfer switch, and turning it off won't be a test of the generator and transfer switch. The switch to turn off would be one outside by the meter, to cut power from the service line to the transfer switch, so that the transfer switch will see this as a service power failure, signal the generator to start, and, on receiving signal from the generator that it is ready to deliver power, switch from service line to generator. If your home is old enough, there may not be an outside cutoff switch to use for this test. Such a switch has been a requirement for newer homes for some time, to give the fire department a quick means to kill power to the house, so they aren't spraying water all over live wiring.

There are plenty of Generac standby generators out there, doing the job just fine. There always will be the occasional lemon or problem caused by improper installation. Keep leaning on Generac, and perhaps get them to have one/another of their approved installers look at those four codes and find out for sure what's going on.

My own generator is a Kohler 14KW, with a service entrance transfer switch. It's been running for several years without a hitch. It self-tests once a week. I had a 500 gallon propane tank installed just to serve the generator, since there is no other combustion unit inside the house. I service the unit myself once each year. One thing that led me to choose Kohler over Generac is Kohler's use of hydraulic valve lifters, vs the solid lifters in the comparable Generac (at least at that time). Solid lifters would have added a step to the annual maintenance, checking the valve stem-lifter clearance with a feeler gauge every year.

I knew someone would claim similar, but by code there has to be a main disconnect switch to disconnect you from the drop. If you think about it, wiring it the way you state places the transfer switched fused by the drop itself.