I've seen them turn on the light when battery and charging system were all working fine. Off hand I think that it sense the charging system isn't working that it would turn the light on. Where it measures I dunno w/o digging in the manual. I assume maybe off the regulator and to the modular switch? You could verify the charging system output both at the battery and the switch. Do a test with the rider off and then with it running at WOT. Also check for the presents of AC. A healthy battery is 12.6 VDC BTW. Running and charging a battery that has been partially discharged you might see 13.5 - 14 ish VDC. No more than a trace of AC should show up at the switch or battery.