Hydropower Costs & Benefits
If you are fortunate to have access to a suitable stream or river, then the return on your investment for hydropower systems depends on some key factors:
- The installed cost of your system. For hydropower, this can vary widely depending on the cost of the civil works required to house the turbine.
- What’s the system efficiency? For hydropower, this can be as high as 90% at ideal sites. A more efficient system at reasonable cost is better for your return on investment.
- What is your current electricity tariff? The more you pay for your grid-supplied electricity means better returns from your hydropower system. And as energy prices increase, your return improves.
- For hydropower, make sure that you obtain any available grant. These are up to £2,500, and this can make a big difference to payback.
- Are you selling your excess electricity and renewable certificates? With sales tariffs of over 10p per kWh available, this can benefit your return.
Typical returns on investment for hydropower systems range from around 5% to 15% per year depending on the factors above.
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