The voltage regulator provides a variable voltage to the field terminal. Think about a model train transformer. Turn the knob and the train gets more voltage and can go faster (do more work) turn up the voltage in the VR the alternator can do more work. Maintaining you battery vs. charging your battery while powering the headlights for example.And what's the difference between that and what I'm doing by connecting the second field terminal to the ground thus creating continuity between the ground and the field wire/terminals
Your alternator is an Isolated field type meaning that both ends of the field coil are not attached to ground. By grounding one end and applying voltage to the other the field coil creates a magnetic field, rotating a coil of wire inside a magnetic field induces a voltage in the rotating coil, that's what charges your battery etc. the stronger the magnetic field the more power the rotating coil can provide
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