Rising energy costs and new CQC sustainability expectations are putting pressure on care homes. This whitepaper offers practical, cost-effective strategies to improve energy efficiency, reduce bills, and stay ahead of regulatory changes—without costly investments. Discover actionable steps to create a more sustainable and financially resilient care home.
Introduction:
The Care Quality Commission (CQC) is now looking closer at how care homes manage their energy use and overall sustainability. With energy prices still high, care homes—particularly smaller providers—are facing significant financial pressures. According to Care England’s Sector Pulse Check (2025), around 80% of smaller care homes are reporting substantially higher energy bills compared to pre-pandemic levels.
However, addressing these issues doesn’t need to involve costly investments. Small, manageable changes can significantly lower your energy bills and ensure your care home remains comfortable for residents and staff. This practical guide will focus on energy management, offering detailed, easy-to-follow advice to help you achieve meaningful savings quickly.
Understanding CQC’s Sustainability Expectations
The CQC has introduced environmental sustainability as part of its assessment framework, reflecting the growing recognition of sustainability’s role in health and social care. While the initial focus has been on NHS Trusts and Integrated Care Systems, care homes are expected to align with best practices in environmental responsibility.
While specific enforcement of sustainability measures in care homes is still developing, those that proactively adopt sustainable practices will be better positioned to meet future regulatory expectations and demonstrate responsible business operations.
This guide is structured into two clear sections: Energy Management and Sustainable Energy Procurement, providing straightforward and hopefully achievable guidance for your care home.
What Are The Sustainability Guidelines:
1. Understanding Environmetal Impact
Care providers should recognise and manage the impact their operations have on the environment, considering factors such as carbon emissions, energy consumption, and climate change risks.
2. Empowering Staff
Leadership teams should educate and engage staff on sustainable healthcare practices, ensuring energy efficiency becomes part of the organisation’s culture.
3. Developing A Green Plan
Homes are encouraged to implement Green Plans to reduce their carbon footprint, focusing on energy efficiency, renewable energy use, and waste reduction
4. Commitment To Net Zero
Embedding net zero principles into day-to-day operations will help care homes meet regulatory requirements and future-proof their services.
5. Compliance and Best Practice:
The CQC expects care providers to align with NHS sustainability guidance, such as ‘Delivering a Net Zero NHS’ and ‘How to Produce a Green Plan.’ These frameworks provide practical steps for reducing carbon emissions and improving environmental performance.
Part 1: Energy Management
Understanding Your Energy Usage – Conducting an Energy Audit
Before you can make meaningful changes, it’s important to understand exactly where energy is being used (and wasted) in your care home. An energy audit is a great first step because it clearly shows areas of high consumption and identifies practical opportunities for reducing energy use. An audit could reveal inefficiencies in heating systems, poor insulation, outdated appliances, or lighting issues that can easily be fixed.
Heating – Your Biggest Energy Expense
Heating typically accounts for around 70% of care homes’ energy bills, making it the ideal place to start saving. Here are some straightforward actions you can take without spending a fortune:
- Turning the thermostat down by just one degree can lower heating bills by around 10%. Encouraging residents and staff to wear an extra layer or providing additional blankets can help everyone stay comfortable without increasing costs.
- Make sure curtains and blinds are closed at night and during cold weather to help keep heat inside. This simple action can have a surprisingly big impact.
- Regularly maintain heating systems and boilers to keep them running efficiently. Small maintenance tasks like bleeding radiators or servicing boilers can prevent unnecessary energy waste.
If your budget allows, upgrading to smarter heating controls like smart thermostats and thermostatic radiator valves (TRVs) can give you more precise control, ensuring rooms are only heated when necessary. While these upgrades involve initial costs, they usually pay for themselves quickly through energy savings.
Lighting – Simple Ways To Reduce Costs
Improving lighting efficiency is another easy win. Switching to LED bulbs is one of the simplest and most effective energy-saving actions. LEDs use significantly less electricity and last longer, meaning you’ll save on replacement costs as well as energy bills.
You can also use motion sensors or occupancy sensors in areas like hallways, storage rooms, and bathrooms to make sure lights are only on when needed. Don’t forget about maximising natural daylight—simply opening curtains and blinds more frequently can dramatically reduce the need for artificial lighting.
Retrofitting – Improving Energy Efficiency Step by Step
Retrofitting means making targeted improvements to your existing buildings to improve energy efficiency. While some retrofit projects, like installing solar panels or heat pumps, may involve higher upfront costs, there are plenty of low-cost actions you can take right now:
- Start by sealing draughts around windows and doors—this simple action can quickly make rooms warmer without turning up the heating.
- Insulate hot water pipes to reduce heat loss. Pipe insulation is inexpensive, easy to install, and immediately helps save energy.
- Start by sealing draughts around windows and doors—this simple action can quickly make rooms warmer without turning up the heating.
- Insulate hot water pipes to reduce heat loss. Pipe insulation is inexpensive, easy to install, and immediately helps save energy.
- Look into cavity wall and loft insulation if your building needs it. There are often grants available for these kinds of projects.
For those able to invest more, adding solar panels can greatly reduce your reliance on grid energy, cutting costs long-term and protecting against price increases.
Creating An Energy-Aware Culture
Energy-saving isn’t just about equipment—it’s also about people. Encouraging staff to be mindful of energy use can have a significant impact. Consider appointing “energy champions” within your team who can share practical energy-saving tips and motivate colleagues to get involved.
Simple behavioural changes, like turning off lights and equipment when not in use or making sure heating isn’t running unnecessarily, quickly become second nature when there’s a strong culture of energy awareness.
Monitoring and Measuring
Many businesses underestimate the importance of regularly tracking their energy use. It helps you see what’s working, keeps staff motivated, and identifies any unexpected spikes in usage quickly. Using simple monitoring systems or software can provide you with easy-to-understand reports, helping you continually refine your approach to energy management.
Financial Support
Government schemes and incentives can help cover the costs associated with energy efficiency improvements and renewable procurement. Programmes such as the Boiler Upgrade Scheme (BUS), ECO 4, and various local grants can help reduce the initial investment required, making sustainable choices more accessible.
For a full list of available schemes and funding options, visit Ofgem’s dedicated page on environmental and social schemes:
https://www.ofgem.gov.uk/environmental-and-social-schemes.
Part 2: Energy Procurement
Why Energy Procurement Matters:
Energy procurement is one of the most important financial decisions a care home can make. Securing the right contract not only ensures long-term cost stability but also plays a key role in sustainability. If managed wisely, energy procurement can deliver the biggest financial savings while reducing your home’s environmental impact.
The energy market fluctuates, and failing to plan ahead can result in significant price increases when contracts expire. By understanding the options available and securing the right type of contract at the right time, care homes can avoid unexpected costs and gain greater financial security.
An energy contract that aligns with renewable energy goals can make a substantial difference to delivering sustainability. Care homes can opt for standard tariffs, which include a mix of energy sources, or fully renewable tariffs that guarantee all electricity comes from renewable sources. The key is balancing cost with sustainability priorities
Understanding Your Options: Renewable vs. Regular Tariffs
Regular Tariffs
Standard business tariffs usually offer electricity generated from a mix of renewable sources, nuclear energy, and sometimes fossil fuels. These are often the lowest cost option, providing immediate financial benefits with reduced carbon emissions compared to fossil-fuel-only tariffs. British Gas, for example, includes renewable and nuclear power as standard at no extra cost, offering a balanced solution that reduces your carbon footprint without significantly increasing costs.
Renewable Tariffs
Standard business tariffs usually offer electricity generated from a mix of renewable sources, nuclear energy, and sometimes fossil fuels. These are often the lowest cost option, providing immediate financial benefits with reduced carbon emissions compared to fossil-fuel-only tariffs. British Gas, for example, includes renewable and nuclear power as standard at no extra cost, offering a balanced solution that reduces your carbon footprint without significantly increasing costs.
Consider Working With An Energy Broker
Navigating the energy market can be complex, and working with an experienced energy broker can simplify the process. A broker acts as an intermediary between care homes and energy suppliers, using their market knowledge to secure the best possible contract rates and terms.
Key Benefits of Working With A Broker
1. Market Insights
Brokers have access to live market data and trends, ensuring care homes don’t lock into contracts at peak prices.
2. Negotation Power
They can use their supplier relationships to negotiate competitive tariffs, flexible contract lengths, and added benefits.
3. Time Saving
Managing energy procurement can be time-consuming; brokers handle the entire process, from gathering quotes to contract management.
4. Risk Management
With fluctuating energy prices, brokers help manage risk by advising on fixed or flexible contracts based on market conditions.
Choosing The Right Broker:
Not all brokers operate transparently, so it’s essential to ask the right questions:
Q.1 How does the broker get paid?
Some earn a commission built into your tariff, while others charge a fixed fee. Ensure all costs are clear upfront.
Q.2 How many suppliers do they work with?
A reputable broker should source quotes from multiple suppliers to offer a range of options.
Q.3 Can they provide references?
Ask for testimonials from other care homes to verify their reliability and effectiveness.
Closing Thoughts
Navigating the CQC’s new energy and sustainability guidelines doesn’t have to be overwhelming. By taking a proactive approach to energy management and smart energy procurement, care homes can reduce costs, improve efficiency, and align with future regulatory expectations. Simple steps—such as conducting energy audits, improving heating and lighting efficiency, and engaging staff in energy-saving habits—can make a real difference without significant investment.
On the procurement side, choosing the right energy contract is just as crucial as reducing consumption. Securing a cost-effective, sustainable energy supply can help stabilise budgets and demonstrate a commitment to environmental responsibility. Whether you opt for a standard or renewable tariff, having a clear procurement strategy in place ensures you’re protected from market volatility.
If you need guidance in securing the best energy contract for your care home, we’re here to help. Our team has extensive experience in energy procurement and can provide expert advice tailored to your needs. Get in touch to explore how we can support your transition to a more sustainable and cost-effective energy strategy.
Thank you for reading—we wish you all the best in building a greener, more financially secure future for your care home.
