Hi Belize- congrats on moving forward! Which 160w panels do you have?
1. The SB3000i is rated for 400w Max using 36 cell panels. So three x 160w will exceed its max. You also need to watch the Max Voltage from the panels. Max is 50vdc.
Re connections- the wires from your battery going to the separator hopefully are heavy gauge/ rated for current and length. Typical separators have only terminals for the positive connections. If you have the battery negative routed to a negative bus bar you can make the Solar Controller Output negative connection there and the Solar Controller Output positive connection to the Separator house battery terminal. A very clean install might have both positive and negative bus bars to handle the connections. As mentioned, protecting the positive wire with a fuse is critical. I like having a circuit breaker on the input from the panels to the SC so I can decouple the voltage from the panels when needed, especially at install time.
You could also connect to the terminals on the Converter although I would make + and - wired runs from Converter and not use the chassis as ground. Having a proper negative bus bar for all of these charging these connections is definitely preferred to chassis grounds at various locations.
My Solar Controller Outputs run via 10 ga wire to my Inverter's Battery Connection + / -terminals which have 4/0 cable runs to the House batteries. Works fine.
2. I would change to a Blue Sea 7622 unit as well. Is your 1316 covered under this recall??
Battery Separator RECALL Information ? North America
3. Your house batteries and engine batteries should all be the same type eg AGM. No mixing of Li w other batteries if on the same charging circuit. Preferably they should all be about the same age.
Your House multiple battery bank needs to be connected so as to optimize charging and draw through both batteries. This is done by connecting the positive supply to your loads/charging sources on one battery and the negative loads / charging to the second battery. If both batteries are 12v then you are connecting the two batteries in parallel configuration.
Hope that helps.