If the hydro site is located more than 300 feet from the house, is it better to use a higher voltage AC system?
If there’s lots of water power available and the alternator rpm changes relatively slowly, it seems better to send well-regulated 120/240VAC, with the shunt regulator inside the house, a lightning arrestor in series, but no batteries or inverters, and use the excess power for heating water, etc. Some water wheels are more controllable than others. A Pelton wheel with no load might run 6 times faster than under full load, but other types might only run 20% faster.
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