Is Solar PV Right for Your Care Home? A Realistic Assessment — Greystones Energy Ltd

Is Solar PV Right for Your Care Home? A Realistic Assessment

Solar photovoltaic panels have become one of the most talked-about energy investments for UK care homes — and with good reason. A well-designed system can cut your electricity bill by 30–50%, generate a return on investment of 12–18% per year, and provide a degree of insulation against future grid price rises.

But solar PV is not right for every care home, and a poorly designed system can significantly underperform expectations. This guide gives you a realistic framework for assessing whether solar makes sense for your site, what it will cost, and how to finance it.

The economics of solar PV depend on two things: how much electricity you generate, and how much of that generation you use directly (rather than exporting to the grid at a low rate).

Care homes score well on both counts.

High daytime consumption. Unlike offices or schools that empty at 5pm, care homes run 24 hours a day. Kitchens, laundry, heating controls, lighting, and medical equipment all consume electricity continuously. This means a larger proportion of solar generation is consumed on-site rather than exported — which is where the financial value lies.

Large roof areas. Most purpose-built care homes have substantial flat or low-pitch roofs with good south or south-west orientation. A 60-bed home typically has 600–1,000 m² of usable roof area, enough for a 100–200 kWp system.

Stable long-term occupancy. Unlike commercial properties where tenants change, care homes have predictable, long-term energy demand. This makes the financial modelling for solar investment more reliable.

In the UK, a 1 kWp solar system generates approximately 850–1,000 kWh per year, depending on location and orientation. Scotland generates slightly less than the south of England, but the difference is smaller than most people expect — around 15%.

For a 100 kWp system on a 60-bed care home:

• Annual generation: 85,000–100,000 kWh
• Typical care home consumption: 200,000–350,000 kWh per year
• Self-consumption rate (without battery): 60–75% of generation
• Electricity displaced: 50,000–75,000 kWh per year

At a current import rate of 28p/kWh, that's £14,000–£21,000 in annual savings from electricity displacement alone, plus a small export income for surplus generation.

Without battery storage, surplus solar generation during peak production hours (typically 10am–3pm on sunny days) is exported to the grid at the Smart Export Guarantee rate — currently 4–8p/kWh for most care homes. You're selling at 4–8p and buying back at 28p. That's a poor trade.

A battery system stores surplus generation for use in the evening and overnight, when solar output has fallen but consumption continues. For a care home with significant overnight loads, a well-sized battery can increase self-consumption from 65% to 85–90% of total generation.

Battery sizing matters. A battery that's too small fills up quickly and still exports surplus. A battery that's too large relative to your overnight load never fully cycles, reducing its financial return. The right size depends on your half-hourly consumption profile — which is why smart metering data is valuable before you commission a solar and storage design.

Indicative costs for battery storage:

• 50 kWh battery system: £25,000–£40,000 installed
• 100 kWh battery system: £45,000–£70,000 installed

Battery costs have fallen significantly over the past five years and continue to decline. Systems installed today are substantially cheaper than those installed in 2020.

Installed costs for commercial solar PV in the UK currently run at approximately £600–£900 per kWp, depending on system size, roof type, and access requirements.

For a typical care home installation:

These figures assume current electricity prices and a self-consumption rate of around 70%. They do not include battery storage.

VAT: Solar PV installations on care homes currently qualify for 0% VAT under the energy-saving materials relief, which significantly improves the economics compared to other commercial buildings.

One of the most significant changes in the solar market over the past few years is the availability of green finance that allows care homes to install solar with no upfront capital cost.

Asset finance works like a hire purchase agreement. You pay monthly instalments over 5–10 years, structured so that the repayments are lower than the energy savings from day one. At the end of the term, you own the system outright.

Power Purchase Agreements (PPAs) involve a third party funding and owning the solar installation on your roof. You buy the electricity it generates at a fixed rate — typically 15–25% below your current grid tariff — for a period of 10–25 years. There's no capital cost and no maintenance responsibility, but you don't own the asset.

For care home operators who are capital-constrained or who prefer to keep their balance sheet clean, green finance makes solar accessible without competing with care quality investments for limited capital.

Not every care home roof is suitable for solar. Before commissioning a full design, it's worth a preliminary assessment covering:

Roof condition and age. Solar panels have a design life of 25–30 years. If your roof is due for replacement in the next 5–10 years, it makes sense to re-roof first — or to factor re-roofing into the solar project.

Structural loading. Standard solar panels add approximately 15–20 kg/m² to a roof. Most modern flat roofs can accommodate this, but older structures may need a structural survey.

Shading. Chimneys, plant rooms, neighbouring buildings, and trees can all cast shadows that reduce generation. A shading analysis using satellite data and solar modelling software will quantify the impact.

Grid connection. Larger systems (above 50 kWp) typically require a G99 application to your Distribution Network Operator. This can take 3–6 months and occasionally requires network reinforcement. It's worth checking your connection capacity early in the process.

Planning permission. Most care home solar installations are permitted development and don't require planning permission. Exceptions include listed buildings, conservation areas, and systems above certain size thresholds. Your installer should confirm the position for your specific site.

The solar market includes excellent installers and some who are less rigorous. When evaluating proposals, ask:

• What is the assumed self-consumption rate, and how was it calculated? If they haven't asked for your half-hourly consumption data, the figure is a guess.
• What degradation rate have you assumed? Solar panels lose approximately 0.5% efficiency per year. A 25-year financial model should reflect this.
• What happens if the system underperforms? Reputable installers will provide a generation guarantee.
• Who is responsible for maintenance and monitoring? Inverters typically need replacing after 10–15 years. Is this included in the proposal?
• Are you MCS-certified? MCS certification is required for grid-connected solar installations in the UK.

We're not solar installers. We don't sell panels or earn commission from installation contracts. Our role is to help care home operators make good decisions about energy investment — which sometimes means recommending solar, and sometimes means recommending something else first.

If you're considering solar PV for your care home, we'd recommend starting with a smart metering installation to establish your consumption baseline, followed by an independent feasibility assessment before you invite installer proposals. That way, you're evaluating proposals against your actual data rather than the installer's assumptions.

We offer free energy reviews for care home operators that include an initial solar feasibility assessment. If solar makes sense for your site, we can help you structure the procurement to get competitive proposals from quality installers — without being tied to any of them.