Managing energy costs aged care Australia facilities face requires a different approach from energy management in many conventional commercial buildings. Aged care homes, hospitals, medical centres and other healthcare facilities often operate continuously, while heating, cooling, hot water, lighting, kitchens, laundries, medical equipment and resident services create substantial and sometimes inflexible electricity demand.
Consequently, simply telling staff to use less electricity is not an effective energy strategy. Organisations need to understand where energy is being consumed, how their electricity contracts operate, when demand peaks occur and which efficiency investments can deliver sustainable improvements without compromising care.
A structured energy management strategy can bring procurement, efficiency, demand management and renewable energy together. Moreover, it can give management teams greater visibility over costs and help them make more informed long-term investment decisions.
Energy is closely connected to service delivery in aged care and healthcare. Residents need comfortable indoor temperatures, hot water and lighting, while healthcare environments can also require specialised equipment, refrigeration, ventilation and continuous technology infrastructure.
Therefore, energy savings cannot come at the expense of safety, resident wellbeing or clinical requirements.
At the same time, seemingly small inefficiencies can become expensive when they occur across a facility every day. For example, an inefficient HVAC system running continuously can consume considerably more electricity than necessary. Similarly, poor equipment scheduling or uncontrolled peak demand can add unnecessary costs.
Aged care providers with multiple facilities face another challenge: no two sites necessarily have the same energy profile. Building age, climate, occupancy, equipment, tariffs and operating practices can all affect consumption.
For that reason, organisations should examine both individual sites and their complete property portfolio.
| Energy area | Why consumption can be significant | Management opportunity |
| Heating and cooling | Long operating hours and resident comfort requirements | HVAC optimisation, controls and maintenance |
| Hot water | Showers, cleaning, kitchens and laundry | Efficient systems and temperature controls |
| Lighting | Extensive operating hours | LED upgrades, sensors and zoning |
| Kitchens | Refrigeration, cooking and dishwashing | Efficient equipment and scheduling |
| Laundry | Heating water, washing and drying | Equipment efficiency and load management |
| Medical and care equipment | Equipment may operate for extended periods | Monitoring and procurement standards |
| Building systems | Pumps, ventilation and other services | Automation and preventative maintenance |
You cannot effectively manage what you cannot see. Therefore, one of the most useful starting points is developing a clear picture of each facility's consumption.
Electricity bills provide basic information, but interval meter data can provide a much more detailed view. It can show when electricity consumption increases, when demand reaches its highest levels and whether significant consumption continues overnight.
Organisations can then establish an energy baseline and compare future performance against it.
Useful metrics can include electricity consumption per occupied bed, consumption per square metre and energy expenditure by facility. However, comparisons should account for differences between facilities, including climate, building design, occupancy and the services delivered.
For multi-site providers, benchmarking can be particularly valuable. If two comparable facilities have substantially different consumption profiles, management can investigate the reason rather than assuming the difference is unavoidable.
Energy monitoring also supports the broader approach used for commercial energy management: analysing consumption patterns and peak demand before choosing or renegotiating electricity arrangements.
Reducing electricity consumption is only one side of energy management. Organisations should also examine how they purchase electricity.
Electricity contracts can contain different pricing structures, demand charges, contract periods, renewable energy components and other commercial conditions. Consequently, focusing exclusively on the headline electricity rate can provide an incomplete picture.
Before going to market, an aged care or healthcare organisation should understand its historical consumption, expected future demand, operational changes and risk preferences.
For example, opening a new wing, installing electric equipment or adding onsite solar could change the organisation's future electricity requirements. Procurement decisions should therefore reflect expected consumption rather than relying solely on historical bills.
Comparing multiple offers and carefully reviewing contract terms can also help organisations understand their options. The supplied Energy Action material similarly emphasises assessing energy requirements, comparing contract structures, negotiating terms and regularly reviewing electricity contracts.
A fixed-price arrangement can provide greater budget certainty because an organisation has more visibility over contracted electricity pricing. In contrast, greater market exposure can create opportunities when market conditions are favourable but also introduces additional price risk.
Some organisations may consider flexible or staged procurement strategies instead.
There is no single contract structure that suits every aged care provider. The appropriate approach depends on consumption, organisational objectives, contract timing, market conditions and tolerance for price volatility.
Energy efficiency should focus on eliminating waste rather than restricting essential services.
For aged care facilities, this distinction is especially important. Residents may be more sensitive to temperature changes, while healthcare environments can have strict requirements for ventilation, refrigeration and equipment availability.
HVAC is consequently an important area to investigate. Organisations can examine temperature controls, operating schedules, maintenance, zoning and equipment performance. Older equipment may also warrant assessment against newer high-efficiency alternatives.
Lighting provides another opportunity. LED technology, occupancy sensors and better zoning can reduce unnecessary electricity consumption while maintaining appropriate lighting levels.
Hot water deserves similar attention because aged care facilities can have substantial demand from bathrooms, laundries and kitchens.
The objective should be systematic optimisation. Energy efficiency measures such as efficient HVAC, LED lighting, smart controls and energy monitoring are also identified as important commercial cost-management opportunities in the supplied Energy Action material.
A facility's electricity cost may depend not only on how much electricity it consumes but also on when and how intensely electricity is used.
When multiple high-load systems operate simultaneously, a facility can create significant peak demand. Consequently, reviewing the timing of flexible loads may uncover opportunities.
For example, some laundry, charging or other discretionary activities might be scheduled differently where operational requirements permit. Building management systems can also help coordinate equipment operation.
However, aged care facilities should never shift essential activities simply to reduce electricity expenditure. Resident comfort, food safety, healthcare requirements and operational continuity remain priorities.
Battery storage may also form part of a demand-management strategy for suitable sites. Nevertheless, organisations should assess expected consumption, tariffs, solar generation and project economics before investing.
Demand management, battery storage, smart controls and shifting appropriate consumption away from expensive periods are also identified as commercial energy-management approaches in the supplied reference content.
Renewable energy can complement efficiency and procurement strategies.
Onsite solar may suit aged care and healthcare facilities because many consume substantial electricity during daylight hours. A well-designed system can offset part of the electricity that would otherwise come from the grid.
However, solar should be sized according to the facility's actual load profile rather than simply installing the largest possible system.
Organisations should assess roof condition, available space, shading, daytime consumption, tariffs, future building plans and financial objectives.
Depending on organisational requirements, alternatives can include direct investment in solar, a solar Power Purchase Agreement or broader renewable electricity procurement. The supplied Energy Action material notes that PPAs can offer organisations a way to access renewable electricity under longer-term commercial arrangements, although pricing, duration and contractual flexibility require careful consideration.
For organisations operating multiple aged care homes, hospitals or healthcare facilities, managing every site independently can make it difficult to identify broader opportunities.
A portfolio strategy can provide greater visibility.
Management can benchmark facilities, identify unusual consumption, coordinate procurement dates and prioritise capital expenditure. Moreover, centralised reporting can make it easier to measure whether efficiency projects actually deliver their expected results.
A practical management cycle involves establishing a baseline, identifying opportunities, prioritising actions, implementing improvements and continuously measuring performance.
Importantly, organisations should reassess their strategy when circumstances change. Building upgrades, additional beds, new equipment, electrification and renewable energy projects can all alter consumption.
A common mistake is focusing entirely on the electricity rate while ignoring consumption and demand. A competitive contract cannot compensate indefinitely for inefficient equipment or unnecessary energy use.
Likewise, organisations should avoid making efficiency investments without establishing a baseline. Without reliable before-and-after information, it becomes difficult to determine whether an upgrade delivered the expected result.
Another mistake is treating every facility identically. Two aged care homes may have different climates, buildings and occupancy profiles and therefore require different solutions.
Finally, organisations should avoid leaving electricity procurement until a contract is close to expiry. A planned approach gives decision-makers more time to assess consumption, investigate market options and understand contract conditions.
Managing energy costs aged care Australia facilities face requires a coordinated approach covering procurement, energy efficiency, demand management, monitoring and renewable energy.
The strongest strategies focus on reducing unnecessary consumption while maintaining resident comfort, operational reliability and essential healthcare services. Furthermore, better energy data can help organisations understand where money is being spent and prioritise investments based on measurable opportunities.
Energy Action helps Australian organisations understand their energy consumption, evaluate procurement strategies and identify opportunities to manage energy more effectively. By combining market expertise with energy management solutions, Energy Action can help aged care and healthcare organisations develop a more informed approach to controlling energy expenditure.
Visit Energy Action to explore energy procurement and management solutions for your organisation.
Aged care facilities often operate 24 hours a day and need to maintain heating, cooling, hot water, lighting and essential services continuously. Kitchens, laundries and other equipment can further increase electricity consumption. Therefore, managing costs requires both efficient buildings and an appropriate electricity procurement strategy.
Facilities can begin by analysing interval meter data and identifying major areas of consumption and peak demand. They can then investigate HVAC optimisation, LED lighting, hot-water efficiency, equipment scheduling and electricity contract arrangements. Importantly, efficiency measures should maintain resident comfort, safety and operational requirements.
Solar can reduce grid electricity consumption when a facility has suitable roof space and sufficient daytime electricity demand. However, the commercial result depends on system size, generation, tariffs, consumption patterns and financing. Therefore, organisations should assess their individual business case before investing.
Energy monitoring gives management teams greater visibility over when and where electricity is consumed. It can help identify unusual overnight loads, demand peaks and differences between comparable facilities. Additionally, monitoring provides a baseline for measuring the results of future efficiency projects.
Energy Action provides energy procurement and management expertise for Australian organisations. It can help businesses examine consumption, procurement arrangements and opportunities for more effective energy management. This approach can support greater cost visibility and better-informed energy decisions across individual facilities or larger property portfolios.
