1. It is less expensive and more readily available than a synchronous generator.
2. It does not require a DC field excitation voltage.
3. It automatically synchronizes with the power system, so its controls are simpler and less expensive.
1. It is not suitable for separate, isolated operation
2. It consumes rather than supplies magnetizing KVAR
3. It cannot contribute to the maintenance of system voltage levels (this is left entirely to the synchronous generators or capacitors)
4. In general it has a lower efficiency.
As energy costs so high, energy recovery became an important part of the economics of most industrial processes. The induction generator is ideal for such applications because it requires very little in the way of control system or maintenance.
Because of their simplicity and small size per kilowatt of output power, induction generators are also favoured very strongly for small windmills. Many commercial windmills are designed to operate in parallel with large power systems, supplying a fraction of the customer's total power needs. In such operation, the power system can be relied on for voltage & frequency control, and static capacitors can be used for power-factor correction.