The increasing use of small wind energy has made it necessary to develop new methods to improve the efficiency of this technology. This improvement is best achieved considering the interaction between the various components, such as the wind rotors, the electrical generators, the rectifiers and the inverters, as opposed to studying the individual components in isolation. This paper describes a methodology to increase the efficiency of Small Wind Turbines (SWTs) equipped with a Permanent Magnet Synchronous Machine (PMSM). To achieve this objective, capacitor banks will be connected between the PMSM and the rectifier. This methodology is motivated by two clear aims. The first one is to operate the SWF with its maximum power coefficient Cp. The second one is to select the most suitable capacitor bank for each wind speed to optimise the energy supplied to the grid. The methodology will be tested on a commercial 3.5 kW SWT, and the results will be studied to determine its feasibility. (C) 2012 Elsevier Ltd. All rights reserved.