Small Engine Troubleshooting Problems? Ask a Mechanic Now.
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There are several things that will cause a capacitor to blow.
The biggest reason is that it is the weakest link in the genset - they simply go bad.
Other things that will cause it are:
The set surging (not running smoothly - revving up and slowing down constantly)
Over loading the genset
A short in the windings of the set.
Bad diodes, if the set has any