Pardon me if I don't see the issue here.
Are not neutral and ground normally strapped together at the distribution panel?
Since the genset is the power source, distribution panel and outlets all in one, wouldn't it make sense to strap them together there?
Or should they be strapped together before the run to the outlet?
Since the frame of the generator MIGHT be grounded, I would want a nice solid return path in the event that hot shorts to a metal chassis in a tool that I'm using. Better to trip the breaker than have 120V AC finding a convoluted path through my body, into the ground and back to the genset...
Correct my amateur self if I'm wrong.
I completely agree, there is no problem here, in fact the neutral MUST be strapped to ground per code, and this is as good a place as any for the manufacturer to do so. Big commercial generators do the exact same thing, just with a larger wire.
Of course, modern generators of this sort should be GFCI protected. The GFCI would work just fine even without any solid bonding to ground. If the generator is insulated and there is a ground fault somewhere, no current flows because the "hot" wire is now the only grounded point in the system, and the ground/neutral are now rotating 120V above ground. Of course, it's highly unlikely that the hot will be grounded and ground not intentionally or incidentally grounded at some point. This is why the ground/neutral bond must be made on the line side of the GFCI circuit. If it's a very weak incidental ground, like the grounded gen rails are sitting on a concrete slab, you still might not get the 5ma required to trip the GFCI, but then, if you're not getting 5ma, then it's not really an issue, is it?
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