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As Canada and the world move rapidly toward increased reliance on wind power generation, self-excited induction generators (SEIGs) will play an important role in distributed wind power generation (DWPG). Understanding the significance and prospects of SEIGs in DWPG, first, this paper elucidates the significance of fault detection (FD) and voltage regulation (VR) in the aforementioned application. A comprehensive analysis of VR and faults on niche industrial 7.5-hp copper-rotor SEIG and conventional 7.5-hp aluminum-rotor SEIG is performed through numerical simulations, and the calculated results are validated through experimental investigations. Second, a twofold Daubechies-wavelet-transform-based module is designed for the following: 1) FD and 2) VR, respectively. A discrete-wavelet-transform-based algorithm is proposed and implemented on a low-cost embedded system to provide an economical solution for the aforementioned issues. Thereafter, the aforementioned schemes are tested, and results are investigated.