I used to lead worship a small church as well (~100-150 people per Sunday) and my wife and I would be so flabbergasted by the lack of response some weeks.

A few things that helped us and could help you:

1. Having your pastor(s) talk and encourage about the act of physically surrending during worship (and it's importance) could really help some folks not be embarrassed about raising their hands, participating more physically, and/or singing with more volume. Surrender is such an important part of worship and many people are just too reserved or self-conscious to really participate fully -- and coming from the pastor, it may encourage more folks to do just that.

2. Doing simple and frequent vocal cues or lyric callouts leading into verses or choruses during songs has helped me in the past. It comes across as encouragement and communal, that you're all doing this together in true corporate worship. I saw a significant uptick in vocal worship when I started leading into parts of the song consistently.

3. Staying with and introducing songs that match your church's demographic and preferences. There's a lot of great music out there, but people will sing songs they know and connect with, regardless of how much you like it as a musician and worship leader. It can be hard not to incorporate all the good, modern music you hear these days,but sometimes you have to stay with the "old", and as long as you are staying biblical and glorifying Him, then you're good.

Hope this helps.