I am a local building inspector working in an area with mostly older homes using 3 wire service entrance to the house. I am conflicted on how to handle the bonding when adding a transfer switch for a generator. These existing services consist of meter box, service disconnect panel and then breaker box inside house. Since they are 3 wire service entrances, these panels are generally bonded to the cabinet and earth in the outside service disconnect. The inside breaker box generally has neutrals and grounds( if present) landed on the neutral bar together. My conflict is with the addition of the transfer switch, that now becomes the service disconnect which should be the first point of bonding. Obviously in a perfect world I would like to see a 4 wire service entrance installed with grounds and neutrals isolated from each other, but I don't live in that world and in most cases it is not practical to make those upgrades. I would love to hear some of your thoughts on this scenario. Thanks.