Energy
Slashing energy bills without disturbing residents
With energy bills continuing to rise, Harry Davis, co-founder of Eden Energy Partners, explains why care homes must embrace new approaches that both cut waste and strengthen resilience
With energy prices now one of the fastest- rising non-staff costs for care homes, many operators are under severe financial strain. Heating, hot water, and 24/7 power for lighting, kitchens, and medical equipment make energy a heavy burden, and one that is difficult to cut without risking resident comfort or compliance. While staffing costs remain the single
largest driver of fee increases, energy remains a key contributor. Every pound spent keeping the lights and heating on has to come from somewhere and, in many cases, it is passed directly to residents and their families. According to market researchers LaingBuisson, the average fees paid by self- funders in the UK have risen by more than a quarter since 2021–22. At a time when the cost of living is already stretched, the prospect of care home bills rising even further can be a significant source of anxiety for families.
The sustainability challenge OakNorth’s latest care sector report states that 70 per cent of care homes will need retrofitting to meet EPC B targets (a policy in the UK aiming to improve the energy efficiency of privately rented non-domestic buildings) by 2030. Rising energy bills will urge a push to sustainability, but cost constraints may hinder progress. The 70 per cent figure is a daunting
one. The sector is heavily reliant on older properties, many of which are difficult to adapt using traditional retrofitting methods. Listed buildings, converted Victorian houses, and other heritage sites form a large part of the UK’s care infrastructure. These challenges make sustainability
targets appear almost unachievable – and they are non-negotiable. Failing to act not only risks breaching regulation but also locks in higher operating costs and
undermines the long-term viability of homes. For many care home operators, the very
idea of retrofitting is a non-starter. Invasive building works disrupt the delicate balance of care delivery, pose safety risks, and can distress residents who depend on stability and routine. The financial burden is another concern – with margins already squeezed, few operators can take on large-scale capital projects that may take years to return on investment. This is why energy efficiency has so
often been seen as unattainable for the care sector. Homes are hampered by higher bills, but equally unable to embark on costly, disruptive building projects.
Thinking SMART According to Care England’s January 2025 Sector Pulse Check, nearly forty per cent
November 2025
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