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Energy Saving Guide for Care and Nursing Homes


Updated: 20/07/2023

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The population of Great Britain is ageing. There are more people over the age of 60 than those under 18. With the end of the extended family unit, many of the country’s older people are moving into care and nursing homes.

This puts pressure on the care home system. Many of them report that they are struggling with the costs of housing and caring for so many older people.

How can care and nursing homes save money? When caring for sick and older people, there are no corners that you can cut. As a result, the savings you can make are limited to energy. At Business Energy, we specialise in helping save money on energy for care homes.

Where Do Care Homes Use Their Energy?

Care homes use a lot of energy. Heating bills will often be high in order to offer residents a warmer environment. This means that many care homes use as much as 70% of their energy on space heating. 12% of energy for care homes goes on water heating. Only around 1 or 2% goes on catering or office equipment. This means that energy represents the only clear area for savings in care and nursing homes.

How Can Care Homes Reduce Their Energy Usage?


  • How old is your boiler? Many care homes have old and energy inefficient boilers. Replacing or maintaining your boiler can help save on your business energy.
  • Central heating – lots of care homes still run on individual electric heaters. Moving to central heating can reduce your bills and your carbon footprint.
  • Radiators – Low water radiators can save money on both heating and water use.


  • Any business that has high energy demands should have effective insulation. This could be in walls, roofs or cavities. Poor insulation wastes money – especially when you use a lot of energy.
  • Maintain and top up your insulation. Insulation needs a degree of care to stay effective.
  • Keep heat in the building by keeping windows closed. A window left open overnight uses as much energy as driving a car 35 miles.


  • Water-saving measures can save you significantly. Replace dripping taps and leaking toilet cisterns – these can waste huge amounts in a large care home.
  • Encourage energy-efficient practices. With 12% of a care home’s energy going on heating water, consider suggesting showers rather than baths for residents.


  • Don’t leave lights running unnecessarily. Install automatic lights, so you don’t light an empty room.
  • Switch your bulbs to LEDs. These use far less energy than halogen bulbs and can last much longer.

Is Your Care Home Not for Profit?

If your care home is run as a non-profit or charitable organisation, you could pay a reduced rate of VAT on your energy bills.

Unfortunately, many charities are still treated as small businesses by their energy supplier. If you’re currently paying the full rate of VAT at 20%, you should contact your energy supplier. As a charity or non-profit organisation, you could be entitled to a reduction in VAT to 5%. You will also be exempt from paying the Climate Change Levy (CCL) which could see your energy bills reduce further.

Could Switching Supplier Reduce Your Bills?

Sometimes, the best way to save on your business energy is to switch supplier. At Business Energy, we specialise in helping businesses like yours save on their energy for care homes. We can talk you through how to save money on your energy.

We can also help you switch your contracts over to a new supplier. Many care homes could save money by moving to a new supplier, and sometimes by switching their meter. We help you through this process, so you can save the most you can.

Get in touch with Business Energy today and see how much you could save on your energy for care homes.

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Percentage energy savings quoted are against customers who let their last contract renew automatically. Facebook Twitter LinkedIn Pinterest