Five waterside locations on Exmoor are set to become power stations.
The micro-hydropower projects, including two watermills, will be awarded a share of £50,000 from EDF Energy's Green Fund.
They will be at Parracombe Mill and Holwell Farm at Parracombe, Lee Abbey at Lynton, Holwell Farm at Lynmouth and Cowbridge Sawmill at Minehead.
The micro hydro-electric turbines will generate up to 230,000kWh per year, enough to power up to 50 local homes.
Exmoor Renewable Energy Group (EREG) was founded last year by a group of micro-hydropower site owners on Exmoor.
The group aims to install renewable energy using the power of water.
The group was formed with the support of Exmoor National Park Authority's Sustainable Development Fund.
One of the first mills to go live will be Parracombe Mill, which could be generating electricity as early as the autumn.
EREG secretary Nick White bought the mill in 2002 with his partner, Beatriz Castro.
"There is the potential for Exmoor to generate a considerable amount of electricity and, provided we are successful, a second wave of micro-hydropower schemes will come on line," said Mr White.
"This could be the small stone that starts the ball rolling and this is very much down to EDF Energy for the contribution it has made."