The incident happened on Gorse Hill Lane, Caythorpe, around 9.23pm last night (Thursday), according to a fire services spokesman.
Households in the area reported losing power for around an hour while crews from Grantham, Brant Broughton and two from Sleaford tackled the fire using a hose to put out flames and thermal imaging cameras to inspect the area.
The spokesman said: “This incident resulted in light damage by fire to a fibreglass-framed substation, a wooden fence panel and a small quantity of garden waste.
“It is thought to have been caused by spontaneous combustion of garden waste. The power company were notified and attended.”
Western Power Distribution de-energised the station at the request of the fire crew at 9.51pm and the power supply was cut shortly after, leaving 462 properties without power.
Power was then restored to all properties in Caythorpe at 10.26pm once the safety checks were complete.
The substation frame will be repaired today and is not expected to cause any problems to power supplies in the village.
Western Power Distribution have apologised for the inconvenience caused.