With a sense wire monitoring the voltage after the fuse box , ignition switch and a few other things the RR has a better idea of what the load is and can adjust the voltage accordingly. Also if the the blinker comes on the RR can increase the voltage to compensate easier. If the RR only sees what is near the battery, with large wires everywhere, then it will consider what the battery is at. Since every wire has some resistance, this is not the most effective way to regulate voltage, especially when you have a small stator. Motorcycles are not blessed with big charging systems. And the first priority for the RR is not the battery but the bike. The battery gets charged as a byproduct. Motorcycles are not really battery chargers, they are motorcycles.
5 wire units work just fine, the 6 wire units with a sense work a little better. If you have a large difference between the output of the RR and the connection where the sense is, it is best to determine what is stealing your volts and correct it.
As to heat, the Honda RRs I offer are rated at around 450 watts. The stator on the GS line of bikes puts out around 280 or so. The RR therefore has more capability than the stator can deliver, and more than our bikes need. This translates into lower heat because it is larger than required.
The Honda RR has low resistance diodes that typically measure around 530 ohms. Other RRs measure around 700. The lower forward resistance means less heat is generated by the rectifier.
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