Solar panels for business: how care homes can reduce energy costs while supporting sustainability
- Gary Carter
- 5 days ago
- 5 min read
Introduction: why care homes are feeling the energy pinch
UK care homes are under unique financial and operational pressure. Rising energy bills, increased regulatory scrutiny, and growing expectations from residents’ families are squeezing margins.
Unlike other businesses, care homes can’t simply reduce operating hours or switch off equipment like heating, lighting, catering, and medical systems, which must all run 24/7. This makes energy costs both unavoidable and unpredictable and in many cases over the last few years, unaffordable.
Solar power offers a way forward: cutting bills, stabilising budgets, and enhancing sustainability credentials all while supporting the quality of care.
👉 For a personalised projection of how a commercial solar installation could benefit your care home, try our Feasibility Kickstarter, the UK’s only independent ROI calculator for commercial solar.
Why care homes are ideal candidates for solar
High daytime energy use
Lighting, catering, laundry, and heating systems consume large amounts of energy during daylight hours, when solar is generating. The best ROI can be achieved when on-site generated power is consumed on-site rather than exported. Our mantra, "if you can use it, you should generate it" holds true for the care home sector that does consume power throughout the day.
Continuous operation
Furthermore, 24/7 care means even night-time demand can be offset with solar plus battery storage solutions meaning you can benefit from excess renewable energy generated during the day. For larger installations, we're able to offer our clients exclusive access to free battery storage solutions that add even more ROI to our already industry leading returns. Get in touch to ask for further details.
Available roof space
Unless the roof has an intricate design, as a general rule of thumb, we expect the amount of roof space available for solar to generally be proportionate to the amount of power consumed, and therefore the size of solar array required. We have seen it happen, but in a care setting, it’s quite unusual for the available roof space not to support a telling contribution to energy needs via solar.
Reputational and ESG benefits
Families, local authorities, and investors increasingly value visible sustainability commitments.
The economics of solar for care homes
Typical ROI:
Capex purchase: 4–7 year payback, meaning at least 18 years of net savings.
Lease finance: predictable monthly payments, no upfront costs.
PPA: guaranteed cheaper energy with zero capital outlay.
Example savings:
Small home (40 residents): £15k–£20k per year
Medium group (150 residents): £50k–£120k per year
Large group operator: £250k+ per year
Case study example: South Wales care home
Annual spend: £96,000
System size: 128 kWp rooftop system
Best-fit funding: Hire purchase, 7 year repayment
Results: £37,000 average annual savings, totaling £923,000 lifetime savings
ESG benefit: 60 tonnes of CO₂e reduction annually
Resident benefit: Demonstrated cost stability helped in CQC reporting and family communications.
Funding models compared for care homes
1. Purchase using own capex
Pros: own the system, strongest long-term ROI.
Cons: upfront cost often not viable for smaller operators.
2. Lease
Pros: no upfront cost, monthly payments predictable.
Cons: slightly lower long-term savings.
3. Power Purchase Agreement (PPA)
Pros: immediate savings, no responsibility for maintenance.
Cons: long-term value captured by funder rather than operator.
Barriers care homes need to plan for
Roof integrity: older buildings may need surveys to prove the strength of the roof. It’s worth noting that funders generally have reasonable flexibility to enable clients to include the cost of remedial works into the funding package they offer as a way of getting more projects done. This can mean that even if building work is needed to facilitate the installation of a renewable energy solution, it’s often still possible to get the project done for no money down or at least without having to use vast amounts of capex to make it happen.
Planning constraints: listed buildings or conservation areas can be problematic and may face hurdles.
Operational disruption: installation must be carefully managed around resident needs. The ability to plan and execute smooth projects is one of the strengths of the solar installation sector so you’ll be assured that the comfort and wellbeing of residents during the project will be catered for.
Financing approvals: board-level and investor sign-off is often required before projects get the go-ahead. This can often be a source of frustration for initiators of renewable energy projects who just want to proceed and deliver benefits to their business. This is an area that Optify excels in. We recognise that getting buy-in from all key stakeholders is a pre-requisite for projects proceeding. It’s why our approach to supporting clients focuses so heavily on building watertight business cases for projects based on the principle of delivering on the business objectives the company has. This starts with our Feasibility Kickstarter tool, a unique commercial solar calculator that helps you establish project viability and build a business case that will get the support needed throughout the team for effective sign-off. Try the Feasibility Kickstarter here.
Beyond ROI: the wider benefits for care homes of solar panels for business
Cost stability: predictable bills support financial planning.
Sustainability credentials: attractive for families and commissioners.
Tender advantage: ESG increasingly influences contract decisions with local authorities.
Staff engagement: green initiatives help with recruitment and retention.
Why generic solar calculators don’t work for care homes
Most online solar calculators are designed for the domestic market which is very different. Generally, these calculators:
Don’t account for 24/7 demand profiles.
Ignore care-specific operational patterns.
Fail to compare funding models relevant to operators.
That’s why an independent tool for modelling solar outcomes is essential for being able to establish project feasibility accurately for projects that deliver on their promises.
Why our Feasibility Kickstarter tool is the gold standard for modelling industry-leading outcomes from commercial solar
Our Feasibility Kickstarter is purpose-built for commercial solar projects like care homes. It factors in:
Roof size and condition.
Your actual energy load profile.
Funding options side by side and establishes best-fit solutions that optimise the financial performance of the project.
Sensitivity to energy price rises.
Building a business case that will get signed off.
Gives you a tailored, data driven analysis of likely performance and returns.
Extreme focus on optimising lifetime savings according to your parameters and requirements.
The importance of delivering renewable energy as a business solution, not a technical one. We ensure to align the benefits to your business objectives, making solar a strategic investment that delivers on your strategic goals rather than being a project about solar panels and inverters.
Conclusion: solar supports care quality as well as cost control
For care homes, solar is not just a cost-saving measure. It’s a way to protect budgets, reassure families and regulators, and invest in long-term sustainability.
The choice of funding model is critical, and every site has unique factors. That’s why independent feasibility is the only safe first step.
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