The nodal admittance method is being used in this paper for the steady-state analysis of self-excited induction generator involving mathematical modeling. Further the nodal admittance method has been used to predict the values of the capacitance and capacitive reactance required for the self-excitation of induction generator at different operating conditions of load, speed, and frequency. The performance characteristics and capacitance range required for self excitation have been determined in Matlab environment.