The service disconnect (with OCP) is just that the service disconnect. The neutral/grounded conductor is bonded to ground in the service disconnect. Everything downstream is a subpanel and the neutral/grounded conductor is isolated from the EGC.

If the inspector said anything different from this WELL HE IS WRONG, at least per the NEC and logic, maybe he has his own CODE.

From the meter to the first OCP (service disconnect), did you run SER or conduit?

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In my opinion, the grounded conductor needs to be bonded at all points ahead of the service disconnect. This allows a fault to take the shortest path back to the source of power.
If I follow your description a fault in the meter socket would mean the conduit and neutral/ grounded conductor would take the fault into the building to the main panel bond before allowing the fault to go to the transformer or source. A fire waiting to happen.


AHEAD of the service disconnect? You mean in the meter?

AND WHY DO YOU SAY THIS?....

An isolated Neutral in the meter can (if an EGC is installed) would make little or difference during a fault.

A fault on two paths is still going to return to the source. If you run Rigid with 3 conductors to the service disconnect, from the meter back box and the neutral is bonded to the back box (typical utility installation), the fault path (and normal neutral current) will be on the neutral/grounded conductor and the EDG (service conduit).