The unit is 240 volts not 120 volts/its ok to have the wht and green tied together so long as it comes directly from the house main panel/new law in some places require them to be separate/wht=Neutral/Green=safety grd to case...now how many watts does this unit draw? 2/12 wires sound awful small for the input current/sounds like you need to upgrade to atleast 2#6 wires for power/1#8 for neutral and atleast a #10 for safety ground
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