Usually generators are not sized for the entire house load. At 200 Amps and 240 volts that would be a 48 KW generator. You can get by with less by just creating a transfer electric panel with critical circuits. You can probably get by with a 20 KW generator.
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Usually you size an emergency generator for the emergency load, not necessarily the total load under normal operations. This emergency load is moved to a separate panel that is connected through a transfer switch to the generator. Once you size this emergency load you will have a more precise answer. I have used a 12 KW generator on a 5 bedroom house and it has always been adequate in emergencies. It powers well pump, propane furnaces, AC, kitchen appliances, washer and dryer, living area outlets and lights and some additional lights.
Yes, the wire size has to be increased. The existing 100 amp service will now probably have a #3 conductor with an insulation factor of 75 or 90 degrees C which is rated for 100 and 105 amps respectively. Increasing to a 150 amp service will use a #1/0 wire size. If you are thinking of an upgrade, skip the 150 amp service and go to a 200 amp panel. New homes are installing 200 amp 42 circuit panels. The extra cost is only reflected in the materials as the labour costs will be the same regardless whether a 150 amp or a 200 amp panel is installed. The wire size for a 200 amp panel is #3/0. With an insulation factor of 75 or 90 degrees C the rating is 200 or 210 amps respectively.
A 200 amp service panel with a 60 amp sub-panel.
Depends on the size of the service. 100 amp service will require 3 gauge, 150 amp service will require 1/0 gauge, and 200 amp service will require 3/0 gauge.
AWG # 3/0 copper.
Depends on the wire size you are using. If the generator breaker is a 30 amp then install a 30 amp breaker.