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A new scheme for voltage regulation of standalone single phase self excited induction generator (SEIG) is proposed. The thyristor switched capacitor scheme with electronic controller is designed and implemented for the reactive power supply and voltage regulation of single phase two winding SEIG reported earlier [1-2]. The recorded waveforms and test results verify the correct and proper operation of all the sections of controller design as implemented in the laboratory. The object of this scheme is to provide a standalone single phase SEIG with acceptable voltage regulation with the help of inexpensive, simple thyristor switched capacitors, suitable for low power generator with single phase out put driven by any fixed speed prime mover such as an engine energized by oil or bio-fuel. The use of SEIG reduces the capital and maintenance cost of the system, while the electronic controller along with capacitors provides acceptable voltage regulation at its output terminal. Such a system is specially suited for portable/standby generator units of 1 to 10 kW rating. Experimental results demonstrate the viability of the scheme for practical deployment.