Small Hydro Electricity Micro Generation .

How does it work?
A typical domestic 6kWh hydro system working at maximum capacity could produce 52000kWh per year, twice the house holds energy needs with the excess sold back the the national grid. You will of course need a constant source of flowing water.
What will it cost?
Small hydro will typically cost £10,000 to install, an initial £6,000 for the 3kW small hydro programme and an extra 3 kW at £1,000 per kw. This should save you 100% on your electricity bill and any excess can be sold back to the electicity supplier. If you structure your payments efficiently, then it may cost you very little, nothing, or even make you money. Please read on.
Assuming the water doesn't stop flowing and your property is run entirely on electricity and not gas or oil, we can moot the following example. If you pay for your installation by re-mortgaging by a typical £7,000 extra, this might add say £350 a year to your mortgage repayments, with interest rates at 5%. Generating your own electricity should reduce your bought in energy requirements from, for example, £1,000, to £0. Your expenditure has already fallen dramatically, you are in fact better off by £650 per annum. Selling any excess electricity back to the grid should also generate a reasonable return on your investment.
Remember too that the solar savings are tax free, so every pound you save on electricity is typically worth around £1.30 of your taxable income.
Grant savings.
Grant savings. With a maximum of £1,000 per Kw of installed capacity, subject to an overall maximum of £2,500 or 30% of the relevant eligible costs, whichever is the lowest.
Please note:
There is currently a £2,500 grant cap per household for micro-generation, solar heating and other technologies. You may apply for grant towards more than one technology, subject to the maximum overall of £2,500.
What do I need?
In addition, before receiving a grant you are required to:
a) insulate the whole of the loft of the property to meet current building
regulations e.g. 270mm of mineral wool loft insulation or suitable alternative;
b) install cavity wall insulation (if you have cavity walls);
c) fit low energy light bulbs in all appropriate light fittings;
d) install controls for your heating system to include a room thermostat
and a programmer or timer.
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