We put solar panels on the roofs of houses and feed that small amount back to the grid. I dont think it needs to be hyper efficient.
There are a few places near me that were old mills and a old large water wheel and it would be interesting to see the effects of a generator on that. At least it mixes in with a rual location rather than some of wind turbines or solar farms we get these days.
There is some validity to that, but for the absolute UK scale, see
https://withouthotair.com/c8/page_55.shtml (BTW, that book should be the starting point for all discussions of energy in the UK
)
40 years ago I was at a museum of rural life in Vik, Iceland. I was talking to the person who had collected all the artefacts ranging from penis fetishes to pelton wheels. I have mercifully forgotten about the former, but the latter is relevant.
40 years before that a farmer had heard about the newfangled electricity, and wanted to try it. The only practical was was to build his own turbine, based around a 10cm(?) pelton wheel that he cast himself. The water came through a pipe of similar diameter, from somewhere up a hill.
As for the legality in the UK, I have no idea - but ISTR it being seriously considered a couple of decades ago.