0% VAT on installation

Micro-Hydro

Micro-hydro systems generate clean electricity from a flowing watercourse on your land — one of the most consistent renewable sources available, earning Smart Export Guarantee payments for any surplus exported to the grid.

Micro-Hydro — line illustration

How Micro-Hydro installation works

  1. A specialist hydrological survey measures the head and flow rate of your watercourse to determine whether generation is viable and to size the turbine correctly.

  2. You apply for an abstraction licence and environmental permit from the relevant authority (Environment Agency, SEPA, or Natural Resources Wales) — your installer or consultant can advise on this process.

  3. An MCS-certified contractor designs and installs the intake, penstock, turbine house, and grid connection or battery system.

  4. The system is commissioned and registered, and you receive an MCS certificate — a prerequisite for Smart Export Guarantee payments from a licensed energy supplier.


Benefits of Micro-Hydro

  • Highly consistent generation — unlike solar or wind, water flows day and night, year-round
  • Earn payments for surplus electricity exported via the Smart Export Guarantee (SEG)
  • 0% VAT on supply and installation
  • Can fully or substantially offset a rural property's electricity demand where flow and head are sufficient
  • Low running costs once installed — turbines have very few moving parts
  • MCS certification required — ensures equipment and installation meet nationally recognised quality standards

Typical cost

Costs vary significantly depending on property size, existing systems, and installer. A surveyor's assessment will give you an accurate figure. Available grants (listed below) can substantially reduce the net cost.


Ideal for

  • Rural properties with a stream or river offering sufficient head (drop) and flow rate
  • Landowners able to obtain an abstraction licence or environmental permit from the Environment Agency (England/Wales) or SEPA (Scotland)
  • Off-grid or partially off-grid homes seeking a reliable baseload renewable source
  • Those prepared for a longer planning and permitting process in exchange for high-yield, consistent output

Grants you may qualify for

View all UK energy grants →

Find MCS-certified Micro-Hydro installers near you

Compare MCS-certified specialists in your area, check their credentials, and book a free assessment worth £380.