Self-excited induction generators offer a robust solution for power production for standalone as well as grid-connected systems. In general, self-excited induction generators require excitation capacitors which make use of the machine magnetization characteristics for voltage build up process as well as operation at a specific frequency. In this paper, a self-excited induction machine is modeled with both the electrical and mechanical dynamics. This modeled virtual machine’s dynamics are utilized for voltage build up process for a standalone photovoltaic converter connected to a local load for a microgrid application. The modeled machine’s parameters are used from the name plate rating from the manufacturer. However, in a microgrid the accommodation of unbalanced and/or nonlinear harmonic rich load is a necessity, therefore, in this work the virtual self-excitation capacitors of the modeled machine are varied based on the machine characteristics.