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Industry guide

Business Energy Prices for Care Homes

Care home energy prices are shaped by round-the-clock occupancy, higher indoor temperature requirements for residents and continuous hot water demand. A typical care home with 30 to 60 beds uses 150,000 to 350,000 kWh of electricity and often a larger volume of gas for heating and hot water, given the sector's higher comfort temperature standards.

Unlike many commercial premises, care homes cannot reduce heating overnight or at weekends, since residents are present continuously. This gives the sector one of the flattest and most consistent energy demand profiles of any commercial building type.

Compare Market benchmarks care home energy contracts against bed count and heating regime, helping operators check whether current rates and standing charges reflect genuine sector norms.

  • Typical electricity use: 150,000 to 350,000 kWh a year depending on bed count
  • Gas usage is often higher than electricity due to continuous heating and hot water needs
  • Regulatory minimum indoor temperatures increase heating demand versus other sectors
  • 24-hour occupancy means little to no overnight demand reduction
  • Contracts of 2 to 3 years are common to support long-term budgeting
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Typical care home energy consumption

Consumption scales with bed count, building age and whether the home has specialist facilities such as hydrotherapy pools or extensive laundry provision.

Care home sizeElectricity (kWh/yr)Gas (kWh/yr)
Small (under 30 beds)100,000 - 180,000120,000 - 220,000
Medium (30-60 beds)180,000 - 350,000220,000 - 400,000
Large (60+ beds, on-site laundry)350,000 - 600,000+400,000 - 700,000+
Indicative annual consumption by care home size Figures are indicative and vary with building fabric, resident numbers and facilities provided.

What drives the cost

  • Space heating maintained at higher-than-typical temperatures around the clock
  • Continuous hot water for washing and hygiene requirements
  • On-site laundry facilities processing bedding and linen daily
  • Kitchen operations providing meals throughout the day
  • Emergency lighting, nurse call systems and medical equipment running continuously

Gas versus electricity split

Gas typically represents the larger share of total energy spend in care homes with gas-fired heating and hot water systems, often 55 to 65 percent of the total, reflecting the scale of heating demand required to meet resident comfort and regulatory standards.

Continuous demand profile

Because residents live on site permanently, care homes see minimal variation between day and night or weekday and weekend demand. This flat profile differs from most commercial sectors and should be factored into how consumption is estimated for contract quotes.

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Standing charges and metering

Larger care homes often qualify for half-hourly electricity metering given their consistent high demand. Standing charges tend to be higher than average, reflecting the substantial connection capacity needed for heating, laundry and catering running simultaneously at all hours.

Contract length and renewal timing

Two to three year fixed contracts are common in the sector, supporting stable budgeting for an operationally continuous business. Renewal quotes should be sought at least 4 to 6 months ahead of expiry given the scale of consumption and the value of securing competitive rates.

How to compare care home energy prices

  • Provide a full year of consumption data reflecting continuous 24-hour operation
  • Confirm whether laundry and catering are on separate meters
  • Check eligibility for half-hourly settlement if not already in place
  • Compare gas rates carefully given gas typically makes up the larger cost share

Care Homes: frequently asked questions

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