Mini Hydro Guide

Belp Weir The government has introduced a range of incentives to encourage investment in mini-hydro schemes and renewable energy in general.

For domestic developers and other non-commercial owners, the government has reduced the VAT payable on hydro-electric plant to 5% for systems supplying buildings which are either residential or used for charitable purposes.

Since many components of a hydro-scheme are not obviously �hydro-electric plant� on their own, the best advantage of this tax-break will be obtained by requesting a hydro installer to procure all hardware for the scheme which he can then genuinely pass on as part-and-parcel of the overall hydro-plant.

The government�s Low Carbon Buildings Programme offers grants to domestic owners of mini-hydro plant equal to �1000 per kW installed, up to a maximum of �5000. The equipment must be chosen from an approved product list, and installed by a registered installer. Further details on www.lowcarbonbuildings.org.uk.
The Programme also offers larger grants to �community� schemes which are owned and operated by a non-profit organisation to the benefit of the local community. Such organisations can include councils, schools, housing associations, etc. Grant of up to 50% of project costs can be obtained. An essential element of these schemes is their ability to raise awareness within the community and improve the national profile of renewable energy schemes.
In addition, under Stream 2A of the Programme, businesses can also apply for up to 40% funding. Application deadlines occur quarterly.
In Scotland, the Community and Household Renewables Initiative (SCHRI) offers grants on a similar basis to the Low Carbon Buildings Programme.
Some Councils have been willing to offer small grants towards small-scale renewable energy projects in their area on an ad hoc basis. District and County Councils should be able to advise on the availability of such funds.