Small rated self-excited induction generators (SEIG) are most suitable for Pico hydro power generation systems in remote mountainous regions for feeding three-phase and single-phase domestic load using 3-phase 4-wire system. The voltage and frequency control is a big challenge in ever changing domestic load scenario. The electronic load controller (ELC) is examined experimentally in this paper. To mitigate harmonics in the standalone SEIG system with the increasing use of electronic gadgets with non-linear load, compact fluorescent lamps, light emitting diodes and computers etc., use of various transformer configurations is evaluated. This paper also presents the experimental evaluation of star-delta and zigzag transformer configurations for harmonic mitigation in 3-phase SEIG system while emulating actual load of isolated mountainous regions in India. The experimental set-up uses a 3HP, 3-phase, 4-pole induction machine coupled with a similar rating DC shunt motor, a multipurpose 3-phase transformer setup for emulation of different configurations, linear/non-linear, balanced and un-balanced load set. The obtained results are presented for comparative evaluation of a low cost, simple and effective standalone SEIG system for electrification of remote and isolated mountainous regions.