Care homes are one of the most energy-intensive types of social care facilities due to round-the-clock heating, hot water usage, specialist medical equipment, laundry operations, kitchens and infection control systems. Many residents require warm environments, continuous care and specific temperature conditions, typically resulting in energy consumption significantly higher than standard commercial properties of similar size.
Energy costs can account for 6–12% of operating expenditure in a care home, making it a major controllable cost alongside staffing, food and insurance.
Typical energy usage in UK care homes
Energy usage depends on the number of residents, building age, insulation quality, heating system type and whether specialist dementia or nursing care is provided.
| Care home size | Residents | Annual electricity usage (kWh) | Annual gas usage (kWh) |
|---|---|---|---|
| Small residential care home | Up to 20 | 35,000–60,000 | 100,000–180,000 |
| Medium nursing care home | 20–60 | 70,000–140,000 | 200,000–360,000 |
| Large dementia or multi-site care facility | 60–120+ | 150,000–300,000 | 400,000–850,000 |
Gas usage is driven by space heating, hot water and laundry. Electricity demand is largely from lighting, refrigeration, medical beds, equipment and kitchen appliances.
Average commercial energy rates for care homes (2025)
| Energy type | Typical unit rate | Typical standing charge |
|---|---|---|
| Electricity | 24p–30p per kWh | 45p–95p per day |
| Gas | 6p–9p per kWh | 40p–95p per day |
Large care homes using more than 150,000 kWh annually may qualify for lower unit rates, particularly through multi-year or flexible procurement contracts.
Estimated monthly energy costs for care homes
| Care home type | Monthly electricity cost | Monthly gas cost | Total estimated monthly cost |
|---|---|---|---|
| Small (up to 20 residents) | £700–£1,250 | £500–£1,050 | £1,200–£2,300 |
| Medium (20–60 residents) | £1,400–£3,200 | £1,200–£2,750 | £2,600–£5,950 |
| Large (60–120+ residents) | £3,100–£6,800 | £2,800–£6,200 | £5,900–£13,000 |
These estimates assume average electricity costs of 27p/kWh and gas at 7.5p/kWh, based on 2025 business rates.
What drives energy consumption in care homes?
Care homes have similar energy characteristics to hospitals and hospitality venues, requiring continuous heating and comfort levels suitable for elderly and vulnerable residents.
Key energy-consuming areas include:
- Heating and hot water for resident rooms, bathrooms and communal lounges.
- Laundry facilities operating daily for bedding, towels and uniforms.
- Specialist hospital-style beds, mobility systems and monitoring equipment.
- Kitchens providing multiple hot meals daily.
- Ventilation and infection control systems.
- Dementia care zones requiring continuous lighting and monitoring.
Heating and hot water can represent up to 65% of total energy costs in a care home.
Energy cost breakdown by activity
| Activity | Share of total energy usage |
|---|---|
| Space heating | 45–55% |
| Hot water and laundry | 15–20% |
| Lighting | 10–15% |
| Kitchen and catering | 10–12% |
| Medical and care equipment | 5–8% |
| Office and ICT | 3–5% |
Cost-saving strategies for care homes
| Energy saving method | Typical annual saving | Notes |
|---|---|---|
| Smart heating and zoning systems | 15–28% | Reduces unnecessary heating in unoccupied rooms or corridors. |
| Heat pump installation | 20–35% | Efficient alternative to gas boilers over the long term. |
| Laundry equipment upgrades | 5–10% | Newer models use less water, gas and electricity. |
| LED lighting upgrade | 8–12% | Reduces lighting costs while improving comfort for residents. |
| Insulation improvements | 12–22% | Particularly effective in older buildings. |
Some large care groups have installed combined heat and power (CHP) systems, which can reduce energy bills by £10,000–£40,000 per year depending on site size.
Comparison with similar healthcare and accommodation settings
| Facility type | Typical monthly energy cost |
|---|---|
| Dental clinic | £650–£1,900 |
| GP practice | £800–£2,400 |
| Veterinary hospital | £2,000–£3,820 |
| Small care home | £1,200–£2,300 |
| Large nursing care home | £5,900–£13,000 |
Care homes sit between hospitality and healthcare environments in terms of daily energy intensity.
How EnergyCosts.co.uk can help
Many care homes are on outdated tariffs and could save 12–22% by switching supplier or renegotiating contracts. Practices with high consumption or multiple sites may also qualify for corporate tariffs, reducing energy unit costs and standing charges.
Using EnergyCosts.co.uk, care providers can compare fixed, variable and flexible procurement tariffs and find greener options such as renewable energy or heat network supply deals.
Summary
Monthly energy bills for care homes can range from around £1,200 for small family-run homes up to £13,000 for larger nursing or dementia facilities. The biggest drivers are heating, laundry and hot water, but significant savings can be made by upgrading heating systems, insulating buildings and switching to more competitive tariffs. Effective energy management not only reduces costs but also improves resident comfort and sustainability across the care sector.
FAQ
A small care home typically spends between £1,200 and £2,300 per month on gas and electricity. Medium-sized homes often pay £2,600 to £5,950, while large nursing or dementia care facilities can spend from £5,900 up to £13,000 per month depending on heating demands and resident numbers.
Care homes operate 24 hours a day and require continuous heating, hot water, laundry, catering, lighting and specialist medical equipment. Older buildings often have poor insulation, making heating less efficient. Resident comfort and health needs mean temperature levels must remain consistently high.
Space heating accounts for up to 55% of total energy consumption. Hot water and laundry typically use 15–20%, while lighting and kitchen operations account for another 20–25%. Medical beds, care equipment and ICT systems consume less but remain essential.
Many medium and large care homes qualify for high-consumption or flexible procurement tariffs, which offer lower kWh rates than standard business contracts. Providers using over 150,000 kWh of gas or electricity per year usually benefit from bespoke pricing.
Yes. Smart heating controls, zoned heating systems, better insulation, LED lighting, energy-efficient laundry appliances and heat pump installations can reduce energy costs by 15–30% while keeping resident comfort and hygiene standards intact.
Large nursing homes and multi-site care groups often use half-hourly electricity meters due to high consumption. These meters allow detailed monitoring and access to better market-based pricing compared to standard fixed-rate business energy tariffs.
A typical commercial washing machine used daily can consume 800–1,200 kWh per month depending on load size and water heating. Multiple machines or frequent cycles can add £200–£450 to monthly energy bills in medium and large care homes.
Yes. Heat pumps can cut gas-related costs by 25–35% over time, particularly in homes with high hot water demand. Solar installations can offset daytime electricity use, reducing bills by 8–15%, especially in large properties with good roof space.
Care homes spend more than standard offices and retail units but slightly less than hospitals. Their energy profile is similar to hotels but with higher heating and hot water demand per resident due to medical and comfort requirements.
By comparing multiple business energy suppliers, renegotiating contracts, considering renewable tariffs or using flexible procurement. EnergyCosts.co.uk allows care homes to compare market-leading deals quickly and access bespoke pricing options for high-usage properties.