Abstract The paper discusses the design and analysis of synchronous reluctance generator with a rating of 2.1 kW. These generators with low power ratings may be a suitable candidate for the rural electrification. In synchronous reluctance generator, the design of the rotor is the most challenging part of the design. Here, the thickness of the axial and tangential ribs plays a significant role in its performance. The design procedure presented in the paper includes the effect of stator resistance, as it cannot be neglected in the design of synchronous reluctance generator with low power ratings. The paper discusses the design procedure of synchronous reluctance generator and analyses the self‐excited ferrite‐magnet synchronous reluctance generator. Various parameters of the designed machine are analysed through an analytical model and Ansys Electronics Desktop software. Further, the paper also includes the experimental validation of the synchronous reluctance generator results obtained through finite element analysis. The paper also proposes formulae to approximate the minimum values of the excitation capacitor requirement, for a self‐excitation of synchronous reluctance generator with inductive load.