With energy prices now one of the fastest-rising non-staff costs for UK 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’s difficult to cut without risking resident comfort or compliance.
And, in OakNorth’s latest care sector report, it states 70% 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.
Harry Davis, co-founder of Eden Energy Partners, argues that retrofitting is no longer an issue, with a new scientific solution that is non-evasive, even to more delicate or listed buildings, and up to 30% can be slashed from care home energy bills, allowing for greater sustainability and a direct route to 2030 targets.
While staffing costs remain the single largest driver of fee increases, energy continues to be 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 Care Sector Tracker 70% 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
Care England’s January 2025 Pulse Report, reports 38.8% of care providers state that utility costs are significantly straining their operational budgets. The same report also suggests that sustainable care facilities offer a healthier living environment for residents, and that investing in sustainability is “not only a necessity, but an opportunity to rethink spending and investment strategies during times of tight budgets.”
There’s a growing range of smart technologies that can significantly reduce energy costs while also supporting sustainability targets.
Smart Building Management Systems (BMS) are now widely used to automate lighting, heating, and ventilation across many sectors, and these systems can cut energy usage by up to 30%. However, BMS often requires substantial upfront investment and integration with legacy systems – challenges that smaller care homes may struggle to overcome.
More accessible solutions, such as smart thermostats and sensors, enable individual areas to regulate temperature based on the presence of a member of staff or a resident. When combined with LED lighting and motion-sensor controls, these technologies are affordable and easy to deploy.
At the infrastructure level, heat pumps and solar PV systems offer major long-term savings and carbon reductions, especially for larger homes with high energy demands. However again, these options typically require greater space, planning consent, and longer return periods.
Meanwhile, real-time energy monitoring tools are gaining popularity for their ability to provide detailed insight into energy usage. While they don’t reduce consumption directly, they allow owners to identify inefficiencies and take swift corrective action.
Ultimately, the most effective energy solutions are those that align with a care home’s physical layout and operating model.
A scientific breakthrough
For our part, we’ve been working closely with OH4, a UK-based engineering firm behind an energy polarisation device. OH4 technology uses a programmed magnet that transmits a specific frequency through the building’s water pipes, which realigns the molecules in the water, creating extra hydrogen and oxygen bonds. This molecular realignment increases the water’s kinetic energy. Essentially, it boosts the internal movement of water molecules.
When heated, this energised water transfers heat faster and more efficiently, meaning less fuel is needed to reach the desired temperature. This breakthrough process leads to an average of 21% savings on heating energy, directly lowering fuel consumption and carbon emissions.
Its key advantage is its compatibility with all types of buildings including those where invasive energy upgrades are simply not possible. Because it works behind the scenes within existing water systems, it requires no structural changes, no drilling, no new insulation, and no visible impact on the building’s aesthetics.
For larger care home chains, these savings can equate to hundreds of thousands of pounds annually, alongside a substantial reduction in carbon emissions.
It’s also a non-disruptive fix and can be fitted without shutting down operations. There are no long-term downtime periods, no need for structural modifications, and no drastic changes to day-to-day energy usage routines.
Learning from hospitality
This technology has already been deployed with impressive results in the hospitality sector. The Headland Hotel in Newquay, a complex heritage property with significant energy demands, has saved more than £50,000 per year since adopting the solution.
If a heritage hotel can achieve these savings without disruption, so can care homes. The difference for the care sector is that energy demand is constant, 24/7. That means the potential for savings is even greater.
One of the most overlooked benefits of tackling energy costs is the potential to relieve pressure on care fees. With self-funders already facing double-digit fee increases in recent years, any opportunity to stabilise or slow future rises should be welcomed.
Every pound saved on energy is a pound that does not have to be passed on to residents and their families. In an era when affordability is becoming a growing concern, especially as life expectancy increases and families face longer stays in care.
A direct route to 2030 targets
New technologies can help care homes move towards EPC B compliance. Rather than being paralysed by the daunting scale of traditional retrofits, homes can make meaningful progress immediately. This is not just about ticking regulatory boxes, it’s about future-proofing the sector and protecting its financial health.
At a time when many homes are at risk of closure, and when operators are under pressure from regulators, investors, and families alike, being able to demonstrate a credible path to sustainability is essential.
Co-founders Harry Davis and Tom McPhilimey
The UK care sector is at a crossroads with rising costs, rising fees, and rising regulatory demands creating an unsustainable situation for operators and families alike. Energy bills, once a background concern, are now a frontline issue. But by harnessing science to deliver immediate, non-invasive savings, the sector can ease financial strain, protect resident comfort, and work towards sustainability targets.
For care home operators, the choice is to continue absorbing ever-higher energy bills and passing costs on to families, or embrace new approaches that cut waste and strengthen resilience. For residents and their loved ones, the difference could be measured not just in pounds saved, but in the peace of mind that quality care remains affordable.
