24/7 high base load
Heating + laundry + medical kit + lighting = constant daytime demand.
Sector: Care Homes
Solar Power Purchase Agreements for care homes
Care home groups operate 24/7 with high cooling, laundry and lighting load. Care UK, Barchester, Bupa Care Homes and the major REIT-backed operators have signed PPAs across portfolios; the 2,000+ independent operators are the next adoption wave.
Quick answer: solar PPAs for care homes
A solar PPA for care homes in 2026 typically prices at 14–18 p/kWh in year one on a 30–150kWp system, versus 21–25 p/kWh grid import. The provider funds, owns and maintains the system for 15–25 years and you buy only the power it generates — no capital outlay. Typical year-1 saving: £3k–£25k.
| 2026 typical PPA profile — care homes | |
|---|---|
| System size | 30–150kWp |
| Year-1 PPA tariff | 14–18 p/kWh |
| Demand-PV match | 24/7 base load including laundry + heating |
| Annual saving range | £3k–£25k |
Five drivers of PPA economics in care homes
Resident comfort + branding
Marketing to families values on-site renewables.
Energy cost pressure
Care home fees regulated; PPA savings flow direct to operating margin.
CQC sustainability
CQC quality of life standards increasingly factor environmental quality.
Sub-verticals within care homes
Every sub-vertical inside this sector has slightly different PPA economics — load profile, roof type, covenant strength all vary.
Large group operators (50+ homes)
Corporate-PPA route; multi-site sleeved.
Specialist nursing homes
Medical equipment loads = strong daytime.
Dementia care
Lighting + sensory rooms benefit from low-cost renewables.
Retirement villages
Larger common-area load + resident benefit.
Specialist children's homes
Smaller systems; community-grant stacking.
Hospice & end-of-life care
Often charity-funded — diocesan/charity grant pairing.
Solar PPA for care homes by city
Local PPA mechanics, regional tariff context and named industrial estates for care homes in the UK's major cities.
- Solar PPA for care homes in London
- Solar PPA for care homes in Birmingham
- Solar PPA for care homes in Manchester
- Solar PPA for care homes in Glasgow
- Solar PPA for care homes in Leeds
- Solar PPA for care homes in Bristol
- Solar PPA for care homes in Edinburgh
- Solar PPA for care homes in Cardiff
- Solar PPA for care homes in Liverpool
- Solar PPA for care homes in Sheffield
- Solar PPA for care homes in Newcastle upon Tyne
- Solar PPA for care homes in Belfast
Case study
320kWp PPA Across a Cornwall Hotel Chain
| System size | 320 kWp |
| PPA tariff | 14.0 p/kWh (year 1) |
| Contract term | 20 years |
| Year-1 saving | £28,000 |
Funding a care home solar system: PPA vs the alternatives
How a PPA compares with the other routes a care homes business can use to fund solar:
| Route | Upfront | Who owns & maintains | Best when |
|---|---|---|---|
| Solar PPA | £0 | Provider | No capital; want predictable 14–18 p/kWh power, off balance sheet |
| Cash / CapEx | Full system cost | You | Capital available; want lowest lifetime cost + 100% AIA in year one |
| Lease / asset finance | £0 down | You (after term) | Want eventual ownership but spread the cost |
| Grant-funded | Part-funded | You | You qualify for sector grant funding (often public sector) |
Full head-to-head breakdowns on compare PPA UK; tariffs on 2026 PPA rates.
Watch-outs specific to care homes
- Quiet operations: care homes are noise-sensitive — install timing matters.
- Resident wellbeing: roof works must minimise disruption.
- CQC compliance: works planning must integrate with CQC inspection cycles.
FAQs
PPA FAQs — Care Homes
What's the typical PPA tariff for care homes in 2026?
Indicative 2026 tariffs for care homes range 14–18 p/kWh. The lower end applies to investment-grade off-takers on 25-year contracts with strong daytime self-consumption; the upper end applies to smaller systems or shorter terms. Our PPA calculator models your specific site.
How long does the PPA setup take?
From first call to commissioning typically 6-12 months. Indicative tariff in 2-4 weeks, site survey + heads-of-terms in 4-8 weeks, full contract in 8-12 weeks, build in 6-16 weeks. Larger systems with DNO upgrades take longer.
What system size suits care homes?
Typical 2026 systems for care homes range 30–150kWp. Smaller sites stack with battery storage; larger sites may split across rooftop + ground-mount or multi-site sleeved structures.
Are there grant alternatives that beat PPA?
Grant capital can beat a PPA on lifetime cost, but check the window is actually open before you plan around it. The main public-sector route, the Public Sector Decarbonisation Scheme, has had no open application window since Phase 4 closed in November 2024 — and even while it was open it was heat-led, so solar qualified only alongside a fossil-fuel heating replacement in the same building. The Industrial Energy Transformation Fund, once the route for energy-intensive manufacturers, closed in July 2025 with no successor fund. For most commercial buyers a PPA wins on cashflow and admin simplicity, and it is deployable now rather than contingent on a future phase. See PPA vs grant-funded.
What's the off-taker covenant requirement?
Most providers want investment-grade or strong-unrated covenant. For weaker covenants, parent guarantees, letters of credit, or shorter contracts can bridge. See off-taker covenant deep-dive.
Related to care homes PPAs
Get an indicative PPA tariff for your care home site
A 60-second form gives us enough to return a vetted provider shortlist and indicative 14–18 p/kWh tariff within one working day.
Get an indicative PPA tariffRelated reading
- Solar Power Purchase Agreements for hospitals & nhs
- Solar Power Purchase Agreements for offices & workplaces
- Solar Power Purchase Agreements for warehouses & logistics
- Solar Power Purchase Agreements for factories & manufacturing
- Solar Power Purchase Agreements for hotels & hospitality
- Solar Power Purchase Agreements for retail estate
Find out what tariff your site would be offered
Solar Power Purchase Agreements for care homes — tell us about your site and we'll return an indicative p/kWh tariff for it. Reply by email within one working day.