How To Reduce Care Home Energy Costs

Here are nine ways to reduce your running costs and maximise energy efficiency in your care home:

1. Get an energy audit

An energy audit is a crucial first step for any care home looking to reduce their energy consumption and costs.

This comprehensive assessment identifies areas where energy is wasted. These include inefficient appliances, poor insulation, or hidden inefficiencies in heating and cooling systems. Audits provide a clear picture of your energy usage patterns and help pinpoint areas for energy efficiency improvements.

Think of it as a roadmap for implementing cost-saving measures.

With the information gathered from your audit, you can prioritise energy efficiency measures that will have the greatest impact on your annual utility bills.

2. Optimise heating and cooling systems

Given the need to maintain consistent temperatures for the well-being of elderly residents, heating accounts for around 70% of a care home’s running expenses.

The optimal room temperature for elderly individuals is between 18°C and 21°C, which is essential for their comfort and physical health.

How to optimise heating and cooling:

• Reducing the thermostat by just 1°C could lead to an 8% reduction in fuel consumption and 10% savings on annual heating bills. Provide extra blankets, jumpers, and socks to compensate for the lower thermostat settings to ensure residents remain warm and comfortable.
• Smart energy management technologies like smart thermostats and thermostatic radiator valves (TRVs) can optimise your heating system. These controls allow you to preset room temperatures remotely at designated times of the day. They offer precise heating control and can shave 16% – 19% off your energy bills. Be wary of where you position thermostats, as close proximity to radiators, draughts or sunlight can hinder their performance.

Bonus reads:

[Smart Thermostats for Your Business]

[Benefits of Commercial Heating Systems for Businesses]

• Opt for central heating as opposed to electric heaters. Since care homes keep multiple rooms warm, radiators are more efficient than electric heaters at distributing heating. They will reduce your electricity costs in the long run. Modern low-H2O radiators use less energy to heat up but provide the same heating and warmth as traditional heating systems.
• Heat pumps are a great cost-saving alternative for care home managers to consider. These carbon-friendly heating systems use less energy than traditional heating methods. With a staggering 300% – 400% energy efficiency rating, you get three to four times more heat per unit of fuel (e.g. electricity).

• Consider a boiler upgrade for maximum energy savings. Most care and nursing homes depend on outdated boilers for heating and hot water, resulting in high energy bills. The Energy Saving Trust estimates energy costs can be reduced by £580 annually when opting for A-grade boilers.

   For instance:

• Non-condensing oil-fired boilers = between 60% and 70% energy efficient
• Gas boilers = have around a 90% energy efficiency rating
• Modern condensing electric boilers = reach up to 95% energy efficiency

Expert insight: Take advantage of government-backed heating schemes like ECO 4, Warmer Homes Scotland, or the Boiler Upgrade Scheme (BUS) to improve energy efficiency and save money on your annual bills.

• Prioritise maintenance: Don’t fall behind on routine maintenance for care home appliances. This includes servicing boilers at least once a year (bi-annually for oil boilers) and maintaining HVAC systems. The benefits of having these appliances professionally maintained improve energy efficiency, prevent premature breakdowns, and lead to long-term cost savings for your business.

3. Reduce lighting costs

Lighting accounts for around 10% to 15% of annual energy bills in nursing facilities.

Here are several strategies to reduce your lighting costs:

Switch to LED lighting

Switching to Light Emitting Diode (LED) bulbs can lead to annual savings of £2 to £3 per light fitting. They consume less energy than traditional T8 and T12 fluorescent, halogen, or incandescent bulbs while providing equal brightness.

Slimmer fluorescent bulbs, commonly known as T5 bulbs, are narrower than older T12 tubes and now available in LED models. Opting for a slimmer bulb is a practical energy-saving method.

However, LEDs boast both cost savings and environmental sustainability.

• LED bulb lifespan = up to 50,000 hours
• Fluorescent bulb lifespan = 15,000 – 20,000 hours
• Halogen bulb lifespan = 2,000 hours
• Incandescent bulb lifespan = 1,000 hours

Compact fluorescent lamp (CFL) bulbs were designed to replace incandescent bulbs. With a lifespan of roughly 10,000 – 15,000 hours, they could help businesses save up to 70% on lighting expenses, but have been phased out in line with the European Commission’s Ecodesign and RoHS Directives.

Expert insight: The Net Zero Worcestershire grant is one example of a local council funding scheme designed to help small to medium enterprises (SMEs) upgrade lighting systems.

Maximising natural light usage

Take advantage of natural daylight whenever possible. Open curtains and blinds to illuminate hallways, living rooms, and bedrooms instead of turning on artificial lighting. Alternatively, opt for skylights to help lower your electricity costs.

The continuous use of artificial lighting not only affects electricity bills but also leads to increased cooling costs. Artificial lights generate excess heat, forcing air conditioning systems to work harder to maintain a stable temperature.

Install smart energy management technologies

Investing in smart energy management systems like motion sensors and key cards is a cost-saving strategy that reduces business energy bills.

• Motion sensors are a highly effective way of ensuring you aren’t wasting money on unnecessary lighting. They can save you up to 10% on your annual lighting expenditure. They’re commonly installed in hallways, stairwells, and other low-traffic areas. Sensors cost as little as £20 and illuminate the zone(s) where motion is triggered. Alternatively, opt for occupancy sensors which illuminate when someone enters a room. These are slightly different from motion sensors as they use infrared energy pulses to identify the presence of a person(s) in an area. They’re commonly used for lighting and HVAC systems and are proven to reduce energy consumption.
• Smart key cards cut the power to lighting and other non-essential devices when a resident exits their room – similar to how hotel rooms work. Hotels have used this method to take control of their energy spend and some have managed to save up to 45% on annual lighting bills.
• Outdoor lighting is essential for security and safety purposes for many care homes. They are often big and powerful but consume a lot of energy. Opt for an LED equivalent to lower energy consumption for these fixtures.

Improving the efficiency of your care home lighting system can lead to 30% savings on your annual bill.

Useful insight: Halogen bulbs have been banned since 2021 as part of the UK’s climate change drive. More recent legislation required the removal of fluorescent lights (T5 and T8) from September 2023. This movement encourages businesses to utilise LED light bulbs instead. However, cost-effective LED HL R7 halogens and T5 and T8 lighting tube equivalents are available in the current market.

4. Hot water management

Hot water heating accounts for at least 12% to 18% of care homes’ annual business gas and electricity bills. Care and nursing homes use a lot of hot water to keep residents warm, happy, and hygienic.

However, there are ways to manage your water bills and reduce high energy consumption in this department. Here are five easy steps to manage your water usage:

Invest in low-flow shower heads

These fixtures use less water but achieve the same pressure and functionality as traditional models. This means less water is heated, resulting in lower energy consumption.

Low-flow shower heads provide water at a rate of 1.5 gallons per minute (GPM), whereas standard shower fittings run at 2.5 GPM.

Promote water conservation practices

Encourage residents to embrace water-saving practices during their daily routines. This could include taking shorter showers or turning off taps while brushing teeth.

This easy-to-implement tactic ensures you save energy and water in the long run, contributing to a more sustainable future and lower energy bills.

Insulate hot water pipes

Heat loss from hot water pipes is a major source of wasted energy, making it essential to insulate them to retain heat. Water is kept at the desired temperature for longer, reducing the strain on your heating system and lowering energy consumption.

Encourage showering over bathing

While some residents may find bathing challenging, others may still enjoy a leisurely soak.

Depending on the water level, around 50 – 150 litres of water is used when bathing. Your geographical location also impacts the cost of heating water as energy suppliers charge different gas and electricity prices throughout the UK.

For example: A 100-litre bath uses roughly 4.5 kWh of electricity. The cost of heating this water could vary as follows:

Prices are pence per kWh. Updated March 2024.

In comparison, a five-minute shower is equal to:

• Low-flow shower head fitting = 37.9 litres
• Standard shower fitting = 47.36 litres

Therefore, a shower with a 9 kW (kilowatt) power output that consumes roughly 0.747 kWh can cost:

Prices are pence per kWh. Updated March 2024.

Switching to showers over baths is a simple way to save on utility bills and water usage.

For better understanding, a London care home can save up to 83% (per week per resident) on its water and energy bill when residents switch daily baths with a five-minute shower.

• Bath = £8.61 per week
• Shower = £1.40 per week
• Calculation: [(Cost of bath – cost of shower) ÷ cost of bath] x 100

Expert tip: Bathroom timers can help residents monitor shower duration.

Invest in eco shower heads

Consider installing eco shower heads. They use advanced technology to deliver a satisfying shower while using around 40% less water. Save energy and water consumption without skimping on performance.

5. Insulation

Proper insulation is critical for maintaining comfortable temperatures within your care home. Insulation helps reduce energy waste and directly impacts your business energy bills.

It works by trapping heat and preventing it from escaping through walls, roofs, and windows. This leads to lower energy consumption to heat your facility, resulting in substantial cost savings on your annual bills.

Types of insulation

There are several types of insulation suitable for care homes:

• Loft insulation: Loft insulation prevents heat loss from living spaces. It is the most cost-effective and impactful insulation measure. Studies show a quarter of a care home’s heat is lost through uninsulated lofts and attics, resulting in high energy bills as your heating systems work harder to retain heat.

There are three main types of loft insulation available in the UK:

1. Quilted – the most common material, made from mineral wool.
2. Blown – made from mineral wool or cellulose, widely used for lofts with difficult access.
3. Insulation boards – made from expanded/extruded polystyrene (EPS/EXPS) and foam (PUR/PIR). Best for flat roofs or care homes needing additional attic storage space.

• Cavity wall insulation: Most modern buildings have cavity wall insulation. However, many homes built between 1920 and 1990 across Great Britain are without this insulation:
• England = 31%
• Scotland = 20%
• Wales = 24%

Roughly a third of a care home’s heat is lost through uninsulated cavity walls.

Cavity insulation fills the 50 mm air gap between the inner and outer brickwork with insulating materials. This method causes minimal disruption as installers drill small holes in the brickwork and fill the gap with insulating foam.

This significantly reduces heat loss through the walls and is crucial for reducing CO2 emissions.

Note: While wall insulation offers significant benefits, potential moisture issues may occur.

• Solid wall insulation: According to the Energy Saving Trust, uninsulated solid walls are responsible for roughly 45% of your care home’s heat loss. Solid wall insulation drastically reduces heat loss and improves the energy performance of your building.

Solid wall insulation is applied to the exterior (or interior) of solid wall buildings (i.e. homes without a cavity). Internal wall insulation is best for homes built before 1930, made from brick, stone, or concrete. It works by adding a layer of thermal material to the existing inner wall.

It’s more expensive – ranging from £40 to £100 per square metre – than other insulating options and generally results in losing a bit of floor space in your facility (for internal insulation). However, the potential savings make this an attractive option for many UK care homes.

Solid wall insulation saves around £300 and slashes CO2 emissions by 2.5 tonnes annually – making it an energy-efficient option.

Investing in proper insulation for your nursing home can save you hundreds of pounds on your annual gas and electricity bills. In addition to insulation, fixing draughts around windows, doorways, loft hatches, and pipe entry points can significantly improve your care home’s energy efficiency.

Investing in proper insulation causes minimal disruption to your routine as professional installers minimise inconvenience to residents and staff. The long-term energy savings and improved comfort levels make insulation a worthwhile investment for any care home in the UK.

Insightful points:

• Opt for an energy audit to identify areas where your building is losing heat.
• 14% of greenhouse gas emissions directly stem from household energy consumption.
• Take advantage of government-backed schemes such as the Great British Insulation Scheme (formerly the ECO+ Scheme) to help offset the cost of your insulation projects.

Bonus read: [The Benefits of Commercial Insulation]

6. Windows

The UK Government states that typical homes and businesses experience about 18% heat loss from uninsulated windows. Single-glazed windows lose twice as much heat when compared to double-glazed glass.

Older windows allow warm air to escape and cold air to enter, forcing your heating system to work harder to maintain comfortable temperatures.

Facilities in the care sector can save energy and money by upgrading to modern, energy-efficient windows.

Glazed windows have one (e.g. double glazing) or two (e.g. triple glazing) 16 mm gaps filled with dehydrated air or inert gas, which creates a barrier between the indoor and outdoor environments. The extra glass reduces heat transfer and improves insulation, boosting energy efficiency and lowering heating bills.

The benefits of insulated windows include:

• Reduced energy consumption: As mentioned, insulated windows significantly reduce heat loss, leading to lower energy bills and a smaller carbon footprint. Double-glazed windows can reduce heat loss by 74%, while triple-glazed panes can cut annual energy bills by 50%!
• Improved comfort: Modern windows provide better insulation, creating a more comfortable and consistent indoor temperature for residents and staff.
• Less noise pollution: The additional layers of glass in double- and triple-glazed windows help block outside noise, creating a quieter and more peaceful environment for residents.
• Potential increased property value: Energy-efficient windows can be a selling point for future buyers, potentially increasing the value of your care home property.

Helpful tip: For maximum savings on your care home energy bills, opt for glazed windows with an A+ energy rating.

7. Invest in energy-efficient appliances

Modern appliances are a game-changer to reduce energy costs and save money in your nursing home facility.

Here are a few key strategies you can start implementing today:

• Appliance upgrades: As appliances age, replace them with energy-efficient models. Look for appliances with high European Union (EU) ratings (e.g. A+++) for superior energy performance. While the initial cost may be higher, the long-term savings on your utility bills will be substantial.
• Regular maintenance: Schedule regular servicing for refrigerators, washing machines, boilers, and dryers at least once a year. Clean washing machine filters at least once a month and repair or replace broken/faulty appliance mechanisms promptly. Appliances operate at peak efficiency when properly maintained, leading to less energy consumption and reducing energy costs.
• Avoid standby mode: Electronic devices continue to draw a small amount of power in standby mode. This “phantom load” can contribute to wasted energy over time. To avoid this, encourage staff and residents to unplug appliances – like device chargers, TVs, coffee makers, and microwaves – when not in use.

Insightful tips:

According to the Energy Saving Trust, powering unused appliances (in standby mode) wastes roughly £45 and releases 40 kg of CO2 annually.

Bonus read: [Which Appliances Use the Most Electricity in Your Business]

8. Educate residents and staff members

Empowering residents and employees is key to fostering an energy conservation culture.

Management and staff play a crucial role in setting the tone for an energy-efficient environment. Staff members must be aware of energy management and actively demonstrate power-saving practices in their routines. Create a system for staff to report potential inefficiencies and provide additional energy-saving training if needed.

Here are a few ways to get everyone involved:

• Awareness campaigns: Organise talks or workshops to educate staff and residents about the importance of energy efficiency. Explain how their actions can contribute to a more sustainable environment. Tailor the sessions to be engaging and informative, using clear language and relatable examples.
• Encourage small changes: Promote simple changes in routines that can collectively make a difference. These practices may include switching off lights in unoccupied rooms, turning off TVs when not in use, and opting for showers over baths.
• Positive reinforcement: Celebrate staff and resident participation for their energy-saving efforts. Create a positive and supportive environment where everyone feels empowered to contribute to the care home’s sustainability and cost-saving goals.

9. Invest in renewable energy

While the above strategies significantly reduce energy consumption and promote substantial cost savings, investing in renewable energy can reduce your reliance on the national grid.

Solar panels convert sunlight into photovoltaic energy (PV) and turn it into direct current (DC). The DC energy then passes through an inverter and converts into alternating current (AC) used to power appliances within nursing homes. Surplus electricity can be stored in additional battery units, which is beneficial for colder, darker months.

While the initial cost of installing solar panels is hefty, it could save you money in the long run – especially given the energy cost volatility in the wholesale market.

A qualified solar technician – registered with the Microgeneration Certification Scheme (MCS) – can provide a comprehensive assessment and discuss the potential energy generation and cost savings for your specific needs. Factors such as roof size and shading from nearby trees or buildings must be considered before you make a final decision.

Explore various government-backed and local council funding schemes to offset the initial cost of solar installations. These are available for both the domestic and non-domestic sectors across the UK.

A few grants currently available for energy efficiency improvements include:

• ECO 4
• UK Shared Prosperity Fund (UKSPF)
• Industrial Energy Transformation Fund (IETF)
• Pembrokeshire Business Carbon Reduction Fund
• Carmarthenshire Business Renewable Energy Fund – part of UKSPF

These grants are part of the government’s broader Net Zero Strategy to reach zero carbon emissions by 2050.

Understanding your care home or nursing home’s current energy usage patterns is vital for managing your monthly energy bills. It also provides an important roadmap for implementing an energy-saving strategy.

This information identifies areas where you use the most energy and allows you to implement targeted measures for maximum effect.

Generally, care facilities use the most energy for:

• Heating = 70%
• Hot water usage = 12% – 18%
• Lighting = 10% – 15%

The best way to identify how you can make savings is by investigating what you already use. Analysing your nursing home’s bills provides a valuable roadmap for optimising efficiency and reducing energy use.

Deciphering your gas and electricity bill is one way to ensure you understand what you’re paying for.

A few key components to pay attention to include:

• Electricity: This details the amount of electricity consumed by your care home or nursing facility. Appliances, lighting, heat pumps, electric boilers, laundry equipment, and medical devices contribute to electricity usage.
• Gas: Many care homes rely on gas boilers for heating and hot water. The gas consumption section reflects the amount of gas used to power these systems.
• Standing charges: Your energy supplier charges additional fixed daily fees regardless of your energy consumption.

As mentioned, electricity and gas prices vary across the UK and your latest utility bill reveals the unit price you pay based on your location.

For instance, care facilities in Northern Scotland will pay higher electricity prices (29.7 p/kWh) when compared to Yorkshire (28.2 p/kWh) care homes.

Improving the energy efficiency of nursing facilities goes beyond reducing your care home’s energy bills. By implementing the energy-saving strategies mentioned in this guide, you’ll positively impact your residents, staff, the environment – and your wallet!

Boost your bottom line

Energy bills are a major ongoing expense for any care home. Energy-saving measures can significantly reduce your business energy consumption, leading to substantial cost savings.

These savings can be redirected towards other critical areas, such as upgrading facilities, investing in staff training, or enhancing resident care programs.

Create a more comfortable living environment

An energy-efficient care home offers a more comfortable living environment for residents.

Proper insulation and efficient heating systems maintain consistent and comfortable temperatures throughout the year. Additionally, natural light creates a more pleasant and inviting atmosphere.

Improved air quality

Many traditional energy sources (e.g. gas boilers) contribute to air pollution.

Energy-efficient measures – such as optimising your heating systems (e.g. by installing heat pumps) and improving ventilation – create a healthier indoor environment for residents and staff by reducing respiratory problems and allergies.

Reduced emissions

Being energy efficient reduces your caring home’s carbon footprint and contributes to the UK’s climate goals.

Future-proofing properties

Improving energy efficiency helps care homes be better prepared for future energy price increases and potential regulatory changes.

Switching business energy providers can be overwhelming and daunting even for the most organised care provider. However, exploring different energy providers can be a valuable strategy to boost your care home’s bottom line.

Utility Saving Expert understands the financial frustration care facilitators face and promises to find you the best business energy deal with the online comparison tool.

Since non-domestic energy prices are unregulated by Ofgem, care homes and nursing homes are left at the mercy of wholesale price fluctuations. By comparing various cost options, you could secure a more competitive deal and save money on your annual energy bill.

A few benefits of switching commercial utility suppliers include:

• Potentially lower costs: By comparing quotes from different suppliers, you can find one that offers lower unit rates for electricity and gas. Even a small reduction in your unit rate can translate to significant savings over time.,/li>
• Tailored tariffs: Different suppliers offer different tariffs. Fixed-rate tariffs provide peace of mind by locking in a set price for your energy for a specific period. Variable-rate tariffs may offer lower costs initially but can fluctuate with market prices. You can choose a tariff that best suits your care home’s needs and budget by comparing various options.

Whether you’re a 10- or 40-bed nursing home, Utility Saving Expert makes comparing business energy prices a breeze! Compare and switch utility suppliers easily and start reaping cost-saving rewards today!

Rising energy costs can be a significant burden for many UK care homes.

By implementing these tried and tested strategies, you’ll experience the benefit of reduced energy consumption, CO2 emissions and operating costs.

By optimising your heating and cooling systems, switching to LED light bulbs and upgrading your boiler, these simple actions make a substantial difference to your wallet without compromising the comfort of elderly residents.

If you’re ready to take control of your nursing home’s finances and experience cost saving like never before, use Utility Saving Expert’s 100% free, online comparison tool today.