Renewable and environment friendly technology especially electricity power generator is a vital innovation in today’s modern era, especially micro-hydro installation innovation. The challenges that we face are not only its installation complexity, but also the acceptance and adoption by local people who live near the area of the installed micro-hydro innovation. Their life customs, economy status, education background, and perceptions are factors which very influential for the success of micro-hydro innovation optimization. Sato et al. (2017) described that ensuring access to affordable, reliable, sustainable modern energy is a key challenge in reducing poverty in developing countries. Off-grid rural electrification based on decentralized renewable energy has been recognized as an effective way to increase access to energy in remote areas. However, there is some doubt about its long-term sustainability. This research analyzes the condition of people in Yogyakarta region who adopted micro-hydro technology as their electricity source.