Micro hydro is a type of hydroelectric power that typically produces from 5 kW to 100 kW of electricity using the natural flow of water. Installations below 5 kW are called pico hydro. These installations can provide power to an isolated home or small community, or are sometimes connected to electric power networks, particularly where net metering is offered. There are many of these installations around the world, particularly in developing nations as they can provide an economical source of energy without the purchase of fuel. Micro hydro systems complement solar PV power systems because in many areas, water flow, and thus available hydro power, is highest in the winter when solar energy is at a minimum. Micro hydro is frequently accomplished with a pelton wheel for high head, low flow water supply. The installation is often just a small dammed pool, at the top of a waterfall, with several hundred feet of pipe leading to a small generator housing.
Construction details of a microhydro plant are site-specific. Sometimes an existing mill-pond or other artificial reservoir is available and can be adapted for power production. In general, microhydro systems are made up of a number of components. The most important include the intake where water is diverted from the natural stream, river, or perhaps a waterfall. An intake structure such as a catch box is required to screen out floating debris and fish, using a screen or array of bars to keep out large objects. In temperate climates this structure must resist ice as well. The intake may have a gate to allow the system to be dewatered for inspection and maintenance.
The intake then tunnels water through a pipeline () to the powerhouse building containing a turbine. In mountainous areas, access to the route of the penstock may provide considerable challenges. If the water source and turbine are far apart, the construction of the penstock may be the largest part of the costs of construction. At the turbine, a controlling valve is installed to regulate the flow and the speed of the turbine. The turbine converts the flow and pressure of the water to mechanical energy; the water emerging from the turbine returns to the natural watercourse along a tailrace channel. The turbine turns a generator, which is then connected to electrical loads; this might be directly connected to the power system of a single building in very small installations, or may be connected to a community distribution system for several homes or buildings.