The Steinmetz connection enables a three-phase induction generator (IG) to operate satisfactorily on a single-phase grid by using only a capacitance phase converter. This paper presents a finite element analysis of this mode of IG operation. A time-stepping, two-dimensional (2-D) finite element method (FEM) is employed in the solver, with the external circuit equations coupled to the set of simultaneous equations formulated with the nodal magnetic vector potentials as the variables. A detailed rotor circuit model that accounts for the current density distribution as well as the end-ring parameters is also presented. Generator performance computed using FEM is compared with that computed using the method of symmetrical components and that obtained experimentally on a small induction machine. The results indicate that FEM gives an accurate prediction of the line current and the output power of the IG.