Creating normal map from Float

You would definitely use something more realistic, like one 2048x2048 that contains 64 frames,256x256 per frame, for example.

You can take a look at rendering your height map into render target. It should be avaliable from version 4.13 Then you can safely use NormalFromHeight function.

There is also a good paper about dynamic rain effects here. This one is my personal favorite.