Hospitals are among the most energy-intensive buildings in the UK due to their 24/7 operations, life-support equipment, strict air quality requirements and specialist heating, ventilation and sterilisation systems. Energy costs can account for 4–8% of a hospital’s total operating budget, making it one of their largest overheads after staffing and medical supplies. Understanding monthly energy costs helps finance teams optimise budgets, plan efficiency upgrades and choose better tariffs.
Typical energy usage in UK hospitals
Energy consumption depends on hospital size, number of beds, equipment levels, and whether it includes high-intensity zones such as operating theatres, laboratories and MRI suites. Below is a general guide to average electricity and gas usage:
| Hospital type | Beds | Electricity usage (kWh/year) | Gas usage (kWh/year) |
|---|---|---|---|
| Small community hospital | 50–150 | 1.2m–2.5m | 2m–4m |
| Medium district general hospital | 150–500 | 3m–7m | 5m–10m |
| Large acute or teaching hospital | 500–1,500+ | 8m–18m | 12m–25m |
Electricity powers equipment such as imaging scanners, monitors, computers, lighting, lifts, and air conditioning. Gas is typically used for space heating, hot water and sterilisation.
Average hospital commercial energy rates (2025)
| Energy type | Small hospital tariff | Medium hospital tariff | Large hospital tariff |
|---|---|---|---|
| Electricity unit rate | 24p–28p per kWh | 21p–25p per kWh | 18p–23p per kWh |
| Electricity standing charge | 70p–£1.10 per day | £1.20–£3.50 per day | £3.80–£10 per day |
| Gas unit rate | 7p–9p per kWh | 5.5p–7p per kWh | 4.5p–6p per kWh |
| Gas standing charge | 60p–£1.30 per day | £1.50–£4 per day | £4–£15 per day |
Large hospitals benefit from lower per-unit rates due to higher consumption and are more likely to be on half-hourly metering or custom procurement contracts.
Estimated monthly energy costs for hospitals
| Hospital size | Monthly electricity cost | Monthly gas cost | Total estimated monthly cost |
|---|---|---|---|
| Small (50–150 beds) | £24,000–£45,000 | £12,000–£24,000 | £36,000–£69,000 |
| Medium (150–500 beds) | £52,000–£105,000 | £25,000–£60,000 | £77,000–£165,000 |
| Large (500–1,500+ beds) | £120,000–£260,000 | £55,000–£125,000 | £175,000–£385,000 |
These figures assume blended unit rates of 22p/kWh for electricity and 6.5p/kWh for gas, based on average 2025 business prices. Costs may vary significantly depending on efficiency measures, tariff type, building age and equipment.
What drives energy costs in hospitals?
Hospitals use energy for critical functions, many of which cannot be reduced without safety risks:
- MRI scanners, X-ray machines and lab analysers.
- Ventilation and air quality systems, particularly in theatres and isolation rooms.
- Constant heating for patient comfort and infection control.
- Sterilisation equipment and hot water demand.
- IT infrastructure, electronic records and telehealth services.
- Exterior security lighting and emergency systems.
Operating theatres can consume 3–6 times more energy per square metre than general clinical spaces. Intensive care units (ICUs) also have high loads due to continuous monitoring and ventilation.
Energy cost saving strategies for hospitals
Even with heavy consumption requirements, hospitals can reduce energy costs by 10–25% using targeted strategies:
| Energy saving method | Typical saving potential | Notes |
|---|---|---|
| Building energy management system (BEMS) | 10–18% | Real-time monitoring of heating, ventilation and equipment usage. |
| LED lighting upgrade | 5–12% | High efficiency, long life and lower maintenance. |
| Combined heat and power (CHP) | 15–30% | Generates electricity while capturing waste heat – popular in NHS hospitals. |
| Solar panel installations | 7–14% | Works well for hospitals with large roof spaces. |
| HVAC optimisation | 8–15% | Adjusts heating and cooling using occupancy data and zone control. |
| Heat recovery ventilation | 5–10% | Reuses heat from exhaust air to reduce gas usage. |
Many hospitals have successfully installed CHP systems, which generate electricity and capture heat for use in heating and sterilisation. This can reduce annual energy costs by several hundred thousand pounds.
Government support and funding
UK hospitals may be eligible for grants and support, particularly through NHS estates funding, Salix Finance and the Public Sector Decarbonisation Scheme. These schemes cover energy-saving equipment such as LED lighting, heat recovery units, building insulation and renewable energy systems.
How to get a better hospital energy tariff
Hospitals should consider:
- Half-hourly metering (mandatory for large sites).
- Fixed contracts for stability or flexi-procurement for better rates.
- Gas and electricity bundle deals.
- Renewable energy corporate PPAs for long-term rate stability.
- Using EnergyCosts.co.uk to compare major commercial suppliers.
Summary
Hospital energy costs can range from £36,000 for small facilities to over £380,000 per month for large acute or teaching hospitals. With healthcare budgets under pressure, monitoring energy usage, improving efficiency and securing cost-effective tariffs are essential steps. Switching to smarter technologies and cleaner energy solutions can help reduce costs and improve sustainability across the NHS and private health sector.
FAQ
A small hospital may spend between £24,000 and £45,000 per month on electricity, while medium-sized hospitals often pay between £52,000 and £105,000. Large acute and teaching hospitals frequently spend £120,000 to more than £260,000 depending on their size, number of beds, and specialist equipment.
Hospitals typically consume 20,000 to 45,000 kWh of energy per bed each year. Larger teaching hospitals with intensive care units and laboratories tend to be at the higher end of this range, while community hospitals with fewer high-intensity treatment areas sit at the lower end.
Hospitals operate 24 hours a day and require specialised equipment, high air quality standards, sterilisation facilities, continuous heating and high levels of lighting. Operating theatres, MRI machines, intensive care units and laboratories consume far more energy than normal commercial spaces.
Yes. Hospitals can integrate energy management systems, upgrade to LED lighting, optimise heating and ventilation, recover waste heat and install combined heat and power (CHP) systems. These measures typically reduce overall energy costs by 10–25% without impacting patient care or safety.
Operating theatres, intensive care units, imaging departments, laboratories and sterilisation rooms are among the highest consumers of energy. These areas use heavy electrical and heating loads for lighting, cooling, ventilation, humidity control and specialist medical equipment.
Yes. Larger hospitals often qualify for lower “high-consumption” or custom procurement tariffs. While a small facility might pay 24p–28p per kWh for electricity, a large NHS Trust or private hospital may secure rates as low as 18p–23p per kWh, especially via wholesale procurement or flexible contracts.
Hospitals can access support from the Public Sector Decarbonisation Scheme, Salix Finance and NHS Estates capital funding. These schemes provide grants or interest-free loans for energy-saving technologies such as LED upgrades, heat pumps, solar panels and building management systems.
Most medium and large hospitals use half-hourly electricity meters due to their high energy demand. These meters record usage every 30 minutes, making it easier to monitor consumption and negotiate bespoke energy contracts designed for continuous and high-load facilities.
If a hospital installs a large rooftop solar system generating around 500,000 kWh per year, it could save between £90,000 and £120,000 annually based on 2025 electricity pricing. Some teaching hospitals with larger roof space can save significantly more.
Hospitals can reduce costs by comparing custom commercial tariffs, using procurement consultants, combining gas and electricity contracts, and exploring renewable corporate power purchase agreements. Business comparison platforms like EnergyCosts.co.uk make it easier to compare rates from major suppliers.