Generac support does NOT recommend end users attempt to modify or service internal generator wiring. Generac-certified dealers are trained to service Generac generators and can be contacted using the dealer lookup tool on Generac.com: How Can I Find a Generac Service Dealer in My Area?
Troubleshooting Generator Startup With Utility Power Present
The N1 and N2 control wires are responsible for sensing utility loss to the site. Any issues with these wires will interfere with the generator controller's ability to automatically sense power loss and transfer power.
Note: Generators can also start in "brown out" situations where the utility voltage drops too low to safely power the house. This can cause the generator to start when it appears that utility power is still present.
1. Confirm the N1 and N2 circuit is installed (B).
2. Confirm the N1 and N2 wires are properly connected. This can occur if either utility sensing wire has become damaged or was improperly installed. This should be checked at both the generator and transfer switch by a certified technician.
3. At the transfer switch, confirm the N1 and N2 fuses are not blown. Fuses may blow for the following reasons:
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A surge from the utility (the intended purpose for the fuse)
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Faulty wiring - a short in the wiring harness
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Controller issues
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Factory wiring issues
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A failed cold weather kit
Note: Fuses in the transfer switch may not be depicted in the location or orientation as shown below. Fuse location, orientation, and size will vary depending on the transfer switch model.

4. The generator may be exercising. Note that the generator does NOT power the home (transfer loads) during an exercise. See the What Is a Generator Exercise? article for more information.
See Also