I would recomend using an SMA windyboy inverter, this allows you to really dial in the outputs of hydro. It will also help in controlling the increased outputs as water flow changes from storm runoff and seasonal shifts.
http://www.sma-america.com/en_US/products/wind-power-inverters/windy-boy-3000-us.html Grid tied Hydro is awesome because it works 24/7, unlike the solar and wind, however it can be a little tricky. Do you already have the turbine? If so knowing the turbines output specs will help.
Where are you located?
I have discussed hydro with Paul on a few occasions, and he sent me an email about this thread. I work for an alternative energy company in Montana, and I would be happy to answer any of the tech questions you have. If I dont have the answers, I work with guys that will. The system I reccomend is excitely what we have done to fine tune a hydro system that has been working for almost thirty years. The wind based inverter allows a lot more fine tuning and effeciency.