The white wire is wrapped with black tape to identify it as hot. The black wire connects the fan to the speed controller. The red wire connects the light to the dimmer.
Use this wiring when the power source originates at the switch and you want to control both the fan and light from there. The hot source is connected directly to the bottom terminal on the switch. Two-wire cable runs from there to the ceiling fan.
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This wiring arrangement allows for lowering the lights with a dimmer and controlling the fan with the builtin pull chain. The source is at the ceiling outlet box and 3-wire cable runs from there to the switch box. The neutral from the source is spliced directly to the white wire on the fan kit and the cable, running it through to the switch box.
Here 3-wire cable is run from a double-pole circuit breaker and split to supply 120 volts to two sets of receptacles. The neutral wire from the circuit is shared by both. This wiring is commonly used in a 20amp kitchen circuit where two appliance feeds are needed, such as for a refrigerator and a microwave in the same location.
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