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If, and only if, the wiring in your Volvo is similar to that of a 240, this might help.
With the key in "Bulb test" position, the lights that come on have different ways of going out when the engine has started. The handbrake and oil lights have their own circuits. The others, including the Alt light, are together.
Check the wires connected to the alternator. Assuming that your car does not have an external regulator, there should be three wires. One is a fat one, it carries the charging current to the battery. One is a thin one connecting the alternator frame to the engine block. The other is a thin one that connects to an insulated lug on the alternator, and it goes on into the dash.
That wire carries a bit of voltage when the key is in bulb test position, and it provides the ground for those lights. If they don't come on, and you are sure that the bulbs are good, the that wire is open somewhere. Look first on the alternator, wiggle the wire - they have been know to look OK but not be so.
That wire, when grounded anywhere, causes the lights to be on when the key is on. When it is properly grounded through the alternator rotor wiring, the lights are on until the alternator begins to charge.
Ground that wire to the frame, key on, and see if you get the lights.
No lights means problems somewhere along the route. Also, no light means no charging.
Hope that this helps.
Good luck,
Bob
:>)
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