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The solenoid on your caddie's main switch allows all the voltage and amperage to make it to the generator. This unit is a vital part of making your golf cart run, but there is a whole list of items called the activation circuit. There are several microswitches located in various places that contribute to making the solenoid work. The forward and reverse has one, and so does the accelerator pedal. The most noticeable switch in the whole system is the Two Terminal Universal Key Switch. It's right up on the dash, and it's just as vital as the rest of them.
Make sure that the rest of the switches in the circuit are functioning. The golf cart key switch is robust and usually does not fail unless there is a direct short. That would indicate at least one other unity and maybe your solenoid being faulty as well. Give Buggies Unlimited a call and ask for a tech to help you find the real problem.
Yes. The ignition switch is used to create interference in the wire circuit that provides current to a solenoid or relay or more switches on the cart. It is a security measure against theft of the cart. On electric carts all that is required to enable the start of the motor is completion of that circuit. A toggle switch would do the same thing but it is mistaken to use a toggle switch for this purpose. A tpgg;e switch used in place of a keyed ignition switch makes the cart to easy to run-off-with, so to speake. Unless you buy an ignition switch with a diode in it, the two terminal switch will work fine with no regard for polarity. This is to say you can connect the wires to the switch with no concern for which wire goes to which terminal. You can't get it wrong. This does not necessarily hold true for gasoline carts.
Used this on a 48 volt CC. Worked fine; Voltage isn't critical as long it's reasonable.
I emailed you a power flow diagram.