Micro-hydro (or hydropower installation) is a good example of small-scale renewable energy that can help to save energy. It exploits water flows through a turbine to drive a generator and produce electricity. Installed on a small river or stream, it can produce enough electricity for an industrial or commercial site.

Micro-hydro is a site-specific technology, and needs to be implemented where specific requirements are met. As such, costs are extremely site-specific, and further depend on the amount of civil engineering work and ease of grid connection. As a general rule, the cost per kW installed for new schemes reduces as size increases (because of economies of scale). Payback periods can be anywhere between 6 and 20 years, depending on this initial cost. The best returns are achieved if there is a possibility to sell back the electricity not used on the site.

Maintenance includes routine inspection and annual servicing.