You're absolutely right to be concerned. What you're describing sounds like a code violation and potentially dangerous. Here's a breakdown of why it's wrong and what you should do

Why Your Concerns are Valid
Neutral-Ground Bonding in a Subpanel

The fundamental principle you're questioning is correct. In a subpanel (fed from a main panel), the neutral and ground should

not be bonded. Here's why: Parallel Neutral Paths

When neutral and ground are bonded in the subpanel, you create a parallel path for neutral current to flow through the ground wire. This can cause:

Stray Voltage

Voltage on the ground wires, which can be a shock hazard.

Nuisance Tripping

GFCI breakers may trip randomly because they detect current imbalance.

Overheating

Ground wires are typically smaller than neutral wires and not designed to carry significant current. They could overheat under sustained neutral load.

The Only Acceptable Bond

The only place where the neutral and ground should be bonded is at the service entrance (usually the main panel). This ensures a single point for fault current to return to the source (the transformer).

Single Neutral/Ground Bar

The fact that the subpanel only has one bar and both neutrals and grounds are connected to it is a clear indication of improper wiring.

No Disconnect

Your description of the fused switch without a disconnect is unusual and potentially non-compliant. While a fused switch can provide overcurrent protection, it doesn't provide a readily accessible disconnect to safely isolate the subpanel for maintenance or emergencies. A manual disconnect is almost always required for a subpanel fed from a generator.

Generator Doesn't Change the Rule

Having a feed breaker on the generator itself does not change the fact that neutral and ground need to be isolated in a subpanel. The generator breaker is for overcurrent protection, not for establishing a ground-neutral bond for the entire system.

Why It's Done Wrong (Possible Reasons, Not Excuses) Ignorance/Incompetence

Sadly, some installers may not fully understand electrical code requirements.

Laziness/Cutting Corners

Installing a second bus bar and properly separating grounds and neutrals takes extra time and effort.

Misunderstanding Generator Requirements

Sometimes installers misunderstand the difference between a permanently installed generator system and a portable generator setup (where bonding is sometimes different).

What You MUST Do


IMMEDIATE ACTION: Turn off the breaker feeding the subpanel in the main panel to avoid any potential safety hazards. Do not use the generator.2. Contact the Generator Company Immediately

Call the company that installed the generator and demand that they rectify the situation immediately. Explain that the neutral and ground are improperly bonded in the subpanel and that this is a code violation and safety hazard.3.

Document Everything

Keep detailed records of all communications with the company, including dates, times, names of people you spoke with, and what was discussed. Take photographs and videos of the existing wiring.4.

Independent Inspection

If the company is unwilling to fix the problem promptly and correctly, contact a licensed and reputable electrician unaffiliated with the original company to inspect the installation. Get a written report detailing all the code violations and required corrections.5.

Code Enforcement

Report the issue to your local electrical inspector. They have the authority to enforce electrical codes and can order the company to correct the violations.6.

Replacement of parts and wiring. The existing panel must be fully disassembled. All wiring must be inspected for damage and re-terminated onto the proper new ground and neutral bars. Check for any screw holes that shouldn't be there.

What Needs to Be Done (The Correct Solution)1. Separate Neutral and Ground Buses



Install a Dedicated Ground Bar

The subpanel needs a separate ground bar, typically mounted to the metal enclosure.

Install a Dedicated Neutral Bar

The subpanel needs a separate neutral bar, typically isolated from the metal enclosure with insulators.2.

Wiring Corrections



Neutral Wires

Disconnect all neutral wires from the existing bar and move them to the new neutral bar.

Ground Wires

Disconnect all ground wires from the existing bar and move them to the new ground bar.

Enclosure Grounding

Connect the ground bar to the metal enclosure of the subpanel using a grounding screw or lug.

Grounding Electrode Conductor (GEC)

Run an appropriately sized grounding electrode conductor (usually copper wire) from the ground bar to the grounding electrode system (e.g., ground rods, water pipe). The size of this wire depends on the size of the service entrance conductors.3.

Disconnect Improvement (Likely Required)

Have the electrician evaluate the fused switch situation and determine if it meets code requirements for a disconnect. It may be necessary to install a separate, clearly labeled disconnect switch.

Important Considerations



Permits and Inspections

Make sure all work is done under a valid electrical permit and is inspected by a qualified electrical inspector.

Licensed Electrician

Only a licensed and experienced electrician should perform this work.

Safety First

Never attempt to work on electrical wiring unless you are fully qualified and understand the risks.

In summary, the installation you describe is not correct and potentially dangerous. Do not use the generator until the problems are corrected by a qualified electrician and inspected by a code official. Flag for review