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You can do this if the wiring from the transfer switch to each subpanel is rated for 200A. Because that wiring will then be protected by your 200A main breaker. If the subpanels do not have 200A rated buses, then you will need a main breaker in the subpanel to protect the subpanel's buses. However, all that seems a bit silly. What I would do is move ...


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Often the stab rating of the circuit breaker mounting spaces are limited to less than the full rating of the busing, making it not possible to draw a single 200A circuit on the load side of the main breaker. I have seen combo meter panels that the meter feeds what is normal viewed as the load side of the main breaker and the stab connections feed the busing. ...


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The conductors to the sub panels have to be sized for their upstream protection. You could, for example, drive a nail into them; downstream breakers won’t prevent a fire in that case. If you don’t have space in the main panel for those breakers, you can put a sub panel right there to protect the run to the others.


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CO production is certainly one concern, and you'd need to ensure that the exhaust system is properly ducted away. But equally important: any fuel-based generator (internal combustion engine) is a major fire hazard and should be placed something like 2 meters away from any structure -- in all directions. I do not know the local code where you live, so ...


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