In the current study, design, analysis and optimization of a direct drive surface-mounted permanent magnet synchronous generator (PMSG), which is suitable for the use in low power wind turbines has been performed. Initially, an analytical design has been realized for the power scale of 2.5 kW under 14 pole geometry. Following the new design, the performance characteristics such as efficiency, torque and cogging torque and magnetic flux have been studied at various rotor speeds. Then, a 3D model of the motor, which is subsequently exposed to finite element analysis (FEA), is acquired to examine the effect of the magnet geometry on the generator cogging torque. In that context, the effects of splitted and skewed magnet structures are examined. In the first design, the magnet is modeled as one piece and the rms value of the cogging torque is found as 436.75 mNm. In the second one, a skewed slit is made over the magnet with a certain distance and that leads to a slightly reduced cogging torque 434.58 mNm. In the other design, (i.e. the divided magnets into two parts) the cogging torque is found as 159.60 mNm, and eventually, by making two slits on the last model, cogging torque is further suppressed to 89.95mNm. It is eventually concluded that the last design has made an improvement up to 80% compared to the earlier design.