Hydroelectricity Investment Information

It is difficult to calculate the precise revenues that can be achieved given the large range of factors, such as the size and planning and development cost of the installation, and the fact that each project owner will use their energy in different ways. 

The table below presents a rough estimate of how much revenue you can expect your hydro system to generate annually as well as when you can hope to break even:

System power Initial system cost Approx. annual income (less running costs) Approx. breakeven point
5kW £50,000 £5,000 10 years
25kW £200,000 £25,000 8 years
50kW £350,000 £45,000 7 years, 8 months
100kW £500,000 £95,000 5 years, 3 months
250kW £1,000,000 £160,000 6 years, 3 months*
1MW £3,000,000 £450,000

6 years, 8 months

*The apparent anomaly in breakeven points here can be attributed to the lower FiT rate available to larger systems.

The above figures do not take into account potential savings from using the energy produced in your own home(s) or business. The total saving could therefore be potentially much higher than these estimates.

As noted already, the energy return from hydroelectricity systems is much more calculable than it is for other sources of renewable energy such as solar PV, as it is less dependent on variations in the local weather.

It is difficult to determine the potential revenue offered by tidal hydro systems given their scarcity.

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