Several techniques have been developed to control Alternating Current (AC) power. This Paper describes a simple low cost AC voltage controller used to Control AC loads which doesn’t demand very high precisions several techniques have been developed to control Alternating Current (AC) power. A novel technique to design and implement a single phase PWM inverter using simple ATmega8 microcontroller rather than using Digital Signal Processor (DSP) controllers. The designed PWM inverter is tested on various AC loads like AC motor and intensity control of incandescent lamp in a closed loop environment.