Energy for residential care homes

We compare business gas and electricity from 20 plus suppliers for residential care homes. Typical bills run £23.3k to £90.7k a year and businesses that switch with us save 40 per cent on average, typically 30 to 50 per cent. The figures on this page are estimates from published UK benchmarks, not quotes.

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The energy reality for residential care homes

What a typical residential care home uses and pays across the UK, from published benchmarks.

Typical annual bill
£23.3k to £90.7k
Published benchmark estimate
Electricity a year
40,000 to 150,000 kWh
Gas a year
180,000 to 750,000 kWh
Average savingestimated
40%
Typically 30 to 50%; more off out of contract rates

Figures are estimates from published UK benchmarks priced at 25p/kWh electricity, 7p/kWh gas and about £365 a year in standing charges. They are not quotes. See how we estimate.

Energy in residential care homes

Personal care without nursing, usually 15 to 60 registered beds, most often a single independent site or a small family group. Heating and hot water do the heavy lifting: high setpoints for sedentary residents, stored cylinders above 60 degrees, an on-site laundry most days and a catering kitchen serving three meals plus snacks. Electricity is a flat, stubborn 24/7 baseload rather than a set of peaks, which is exactly the profile that gets priced badly on a rollover. There are around 10,300 care homes without nursing registered with CQC in England, the large majority independently owned and holding their own supply contracts.

Common energy challenges for residential care homes

  • Heating that cannot be turned down. Residents are sedentary and often cannot tell you they are cold, so setpoints stay at 22 to 24 degrees and the boilers run through the night as well as the day.

  • A laundry that never catches up. Continence care, bedding and personal clothing mean several washer-extractor and tumble dryer cycles a day, at 5.5 to 10 kWh per drying cycle.

  • Hot water held at temperature whether anyone bathes or not, because legionella control does not bend around a tariff.

  • Fee income largely set by the local authority, so every pound of overpriced energy comes straight out of staffing and maintenance rather than out of a price rise.

Where the energy goes

Typical equipment loads across care homes and supported living, with annual kWh and cost bands from published benchmarks.

EquipmentkWh a yearCost a year (est.)
Gas boilers, radiators and space heating (24/7 at 22-24C)250,000–500,000 kWh£17,500–£35,000
Hot water: stored cylinders, assisted baths, wet rooms, secondary circulation90,000–180,000 kWh£6,300–£12,600
On-site laundry: washer-extractors and vented tumble dryers18,000–45,000 kWh£4,500–£11,250
Catering kitchen: combi ovens, dishwasher, walk-in fridge and freezer20,000–45,000 kWh£5,000–£11,250
24/7 lighting, nurse call, door access, CCTV and fire systems15,000–38,000 kWh£3,750–£9,500
Passenger lifts, ceiling hoists, profiling beds and pressure mattress pumps6,000–18,000 kWh£1,500–£4,500

Energy saving tips for residential care homes

  1. 1

    Diarise your contract end date and price 6 to 12 months out. Out-of-contract rates typically run 30 to 80 percent above a negotiated fixed price on published broker estimates, and care homes are among the easiest businesses for a supplier to roll over quietly.

  2. 2

    Lag the secondary hot water circulation loop and put the circulation pump on a sensible schedule. It is one of the few gas savings in a care home that does not touch resident comfort.

  3. 3

    Swap corridor, stairwell and en-suite fittings to LED with presence sensing on low-traffic routes. These run 24 hours a day, so payback is far shorter than in a shop or office.

  4. 4

    Ask for half-hourly data if you have AMR. It shows how flat your overnight baseload really is, which is the argument for a better-shaped contract rather than a standard small-business quote.

  5. 5

    If you own more than one home, tender them as one portfolio and align the end dates so the group renews together instead of drifting one meter at a time.

Illustrative example

What switching typically looks like for care homes

Residential care home

Around 30 registered beds with in-house laundry

Typical annual bill
£30,000£55,000
Saving at 3050%
£12,750£21,250estimated

Heating, hot water, laundry and catering cannot be switched off, so the whole bill rides on the contract rate.

Illustrative example, not a real customer. Figures are estimates based on published UK benchmarks. See how we estimate. See all worked examples.

Residential care home energy questions, answered

Published UK benchmarks put residential care homes at roughly 40,000 to 150,000 kWh of electricity a year and 180,000 to 750,000 kWh of gas, which comes to about £23.3k to £90.7k a year at 25p per kWh for electricity, 7p per kWh for gas and around £365 in standing charges. These are estimates from published sector data, not quotes. One recent bill turns them into a real comparison.

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Where these figures come from (29 sources, research reviewed 2026-09-07)Show
  1. CIBSE TM46:2008 Energy Benchmarks (category 21, Long-term residential: 65 kWh/m2 electricity, 420 kWh/m2 fossil-thermal)
  2. Utility Bidder - Care Home Energy Costs sector page
  3. Utility Saving Expert - How To Reduce Care Home Energy Costs
  4. Love Energy Savings - Energy Saving Guide For Care And Nursing Homes
  5. Smarter Business - Energy Efficiency in Care Homes
  6. UNVERIFIED IN REVIEW: Care Home Management - Care providers are paying per bed power costs of £4k+
  7. carehome.co.uk - Care home facts and stats: settings, population and workforce
  8. GOV.UK - Adult social care in England, monthly statistics: August 2025
  9. GOV.UK - Main findings: ownership of children's social care providers in England 2025
  10. Health & Social Care in the Community - Extra Care Housing in the United Kingdom: A Systematic Scoping Review (2026)
  11. Electrolux Professional - Saving energy and money with the latest laundry technology
  12. Future Lift Services - Lift Power Consumption Guide
  13. Telnergy - Rolling Business Energy Contracts UK
  14. Smarter Business - What are out-of-contract business energy rates
  15. Business Energy Comparison - Care Home & Nursing Home Energy Prices
  16. Bionic - What is the Average Energy Consumption for Different UK Businesses?
  17. Carehomebuilders - What Is the Ideal Size for a Profitable Care Home Development?
  18. RDS Carebuild - UK Care Home Design Requirements 2025
  19. Adveco - Low Carbon Hot Water in Care Homes
  20. SaveMoneyCutCarbon - Ten steps for care homes to reduce energy and water bills
  21. CIBSE TM46:2008 Energy Benchmarks, primary document (benchmarks table and building-type lookup)
  22. Ofgem - Get energy for your business (microbusiness definition)
  23. Ofgem - Decision on automatic rollovers and contract renewals for micro-business consumers (SLC 7A)
  24. Ofgem - Review of typical domestic consumption values: decision (TDCV from 1 July 2026)
  25. Wales & West Utilities - Priority Services Register FAQs
  26. Electrolux Professional - Saving energy and money with the latest laundry technology (verified quote)
  27. Utility Saving Expert - How To Reduce Care Home Energy Costs (verified quotes)
  28. Utility Bidder - Care Home Energy Costs sector page (verified quotes)
  29. Telnergy - Rolling Business Energy Contracts UK (re-read in review)

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