Some math:
One recycler uses 1 eu/t and takes 35 ticks per recycling operation.
That means it takes 280 ticks per scrap produced, on average, and consumes 280 eu to do so.
870 - 280 = 590 eu
590 eu over 280 ticks = 2.107 eu/t, which is more than most renewable generators.
Because a generator burns a piece of scrap in 87 ticks, but a recycler takes 280 ticks to produce one, you will need at least one generator for every 3.218 recyclers.
From 3.218 recyclers (which take 10 iron to make) and one generator (which takes 8 iron to make) you will get 6.780 eu/t, and spend 40.18 iron ingots. That's 0.1687 eu/t/iron ingot.
From solar, you get about 0.5 eu/t from 10 iron. That's 0.05 eu/t/iron ingot.
From wind, you get up to 1.3 eu/t from 12 iron. That's 0.108 eu/t/iron ingot.
From unmanned water, you get up to 0.25 eu/t from 4 iron. That's 0.0625 eu/t/iron ingot.
From manned water, you get up to 2 eu/t from 4 iron. That's 0.5 eu/t/iron ingot.
Conclusion: This gives you cheaper power than any other simple renewable source, other than manned watermills.
Thought I should add: I tried this in SMP once, before this topic, but I ended up losing energy overall. I think I got the balance of the various parts wrong then - not enough recyclers to offset the fact that I was making cobble pipes as scrap fodder, which costs energy to macerate and smelt the cobblestone.