Care homes use energy differently to many other businesses. They operate around the clock, need reliable heating and hot water, and often have higher electricity demand from lighting, laundry, catering, medical equipment and day-to-day resident care.
This means energy costs can build up quickly. For care home operators, having a clearer view of energy use is not just helpful, it can support budgeting, cost control and better long-term energy management.
One option many care homes consider is a smart meter. But are smart meters worth it for care homes, and do they actually help reduce energy costs? This guide explains how they work, what the benefits are, and how to decide whether a smart meter is right for your site.
A smart meter is a gas or electricity meter that automatically sends usage readings to your energy supplier. This means your supplier can receive regular and accurate meter readings without your team needing to submit them manually.
For businesses, the main benefit is visibility. Instead of relying on estimated bills or occasional readings, a smart meter can help provide a clearer picture of how much energy your site is using. Smart Energy GB explains that business smart meters can send readings directly to suppliers, helping with accurate bills and reducing manual meter readings.
Care homes are high-use environments. Heating, hot water, lighting, kitchens and laundry facilities are often in use every day, and many parts of the building need to remain comfortable and safe at all times.
Because of this, small changes in energy use can have a noticeable impact over time. NHS England’s healthcare energy guidance also highlights the importance of energy efficiency, building energy management and behaviour change in healthcare environments. While care homes are not the same as hospitals, the same principle applies: better energy visibility can support better decision-making.
One of the main smart meter benefits is more accurate billing. If your care home is still receiving estimated bills, you may be paying too much, too little, or dealing with corrections later. A smart meter helps reduce this issue by sending readings automatically.
Smart meters can also make it easier to spot patterns. For example, you may see higher usage at certain times of day, across certain buildings, or during specific routines. Energy Saving Trust explains that smart meters can support more accurate bills and help users understand energy consumption more clearly. For care homes, that can make energy management more practical.
A traditional meter usually needs to be read manually. This means someone must take a reading and submit it to the supplier, or the supplier may estimate usage if no reading is provided.
A smart meter does this automatically. It records usage and sends the data to your supplier, which can help reduce admin time and improve billing accuracy. The difference is not that a smart meter uses less energy by itself, but that it gives you better information to manage energy use more effectively.
In many cases, care homes can switch to a smart meter through their energy supplier. The supplier will usually confirm whether your site is eligible, what type of meter is needed, and whether any upgrade work is required.
The process can vary depending on your current meter, supply type, site size and contract arrangement. Ofgem says suppliers are responsible for fitting smart metering equipment, and business eligibility can depend on the type of customer and metering setup. For larger or more complex care homes, it is worth checking this properly before agreeing to any changes.
A smart meter does not automatically reduce energy costs. It will not lower your unit rates or change how much energy equipment uses. What it can do is give you better information, which can then help you make better decisions.
For example, if usage is higher overnight than expected, there may be equipment running unnecessarily. If laundry, heating or kitchen usage is causing peaks, you may be able to adjust routines or review efficiency. The Carbon Trust explains that metering and monitoring energy use helps organisations quantify savings and support energy efficiency investment with reliable data.
A smart meter may be worth considering if your care home has high energy bills, estimated bills, regular billing issues, or limited visibility over when energy is being used. It may also be useful if you manage multiple sites and want clearer data across your portfolio.
Before switching, it is worth checking your current meter type, supplier contract, usage pattern and whether your site needs a standard smart meter or a more advanced metering setup. The right option depends on how your care home operates, not just whether smart meters are available.
At E for Energy, we help care homes understand whether smart metering is the right option for their site. This can include reviewing your current meter, checking your energy contract, identifying billing issues and advising on whether a smart or advanced meter would be more suitable.
We also support care homes with wider energy management, supplier reviews, contract renewals and multi-site energy strategies. If your care home is looking to reduce confusion, improve visibility and take better control of energy costs, speak to E for Energy for clear, practical advice.