How Rising Electricity Costs Affect Childcare Providers

Why electricity costs matter so much in childcare

Electricity is now a major concern for many childcare providers, particularly nurseries operating from larger buildings with long opening hours. Even relatively small increases in electricity prices can have a noticeable effect on monthly running costs.

Unlike some businesses, childcare settings cannot easily reduce heating, lighting or ventilation without affecting comfort, safety or the quality of the environment. Young children need stable indoor temperatures, good lighting and fresh air throughout the day.

Many providers therefore find themselves trying to balance rising costs with the practical realities of caring for children safely and comfortably.

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Where most electricity is used

Electricity use in childcare settings often comes from a combination of smaller systems operating continuously throughout the day rather than one single large item of equipment.

Common sources of electricity use include:

Heating and hot water systems
Lighting throughout classrooms and play areas
Kitchen equipment and food preparation
Laundry appliances
Computers, tablets and office equipment
Ventilation and air conditioning
Security systems and CCTV
Outdoor lighting and access controls

Some buildings also rely heavily on electric heating, especially where older gas systems have been removed or where extensions have been added over time.

Why older buildings can become expensive to run

Many nurseries operate from converted houses, older commercial buildings or properties that were not originally designed for childcare use. These buildings may have limited insulation, ageing electrical systems or heating arrangements that are expensive to operate.

Long opening hours can increase the problem. A building heated from early morning until evening may consume large amounts of electricity during colder months, particularly where rooms are opened frequently or ventilation requirements are high.

In some cases, providers only discover how inefficient a building has become after electricity prices rise sharply.

Related information about commercial electricity and energy systems can be found here: what part of your energy system is actually costing you money.

Why costs can rise even when usage stays similar

Some childcare providers are surprised to find that electricity bills rise sharply even when their routines and occupancy levels have not changed very much.

This can happen for several reasons. Electricity tariffs may change, standing charges may increase, or more electricity may be used during expensive peak periods. Older equipment can also become less efficient over time.

Heating systems, ventilation equipment and refrigeration appliances may gradually consume more power as they age, even if the change is not immediately obvious day to day.

Businesses trying to understand rising electricity bills sometimes look more closely at usage patterns and peak demand rather than total consumption alone. A broader explanation can be found here: how half-hourly data explains high electricity bills.

Can solar power help childcare settings?

Some childcare providers are now exploring solar power as a way to reduce long-term electricity costs. Nurseries often operate during daylight hours, which can align reasonably well with solar electricity generation.

However, suitability depends on the building itself. Roof condition, orientation, shading, electrical infrastructure and energy usage patterns all matter. Some smaller sites may find that only modest systems are practical.

Others may discover that the building requires electrical upgrades or roof work before solar becomes realistic.

A practical overview of pricing can be found here: how much industrial solar costs.

Looking ahead

For many childcare providers, energy costs are likely to remain an important operational issue. Buildings that once felt affordable to run may now need closer attention, particularly where electricity use is high throughout the day.

Understanding how the building uses energy is often the first step. In some cases, relatively small operational changes may help. In others, larger decisions involving heating systems, insulation or electricity infrastructure may eventually become necessary.

Useful information and support may also be available from organisations including GOV.UK, Ofgem, NDNA and PACEY.

As electricity prices continue to affect many types of businesses, childcare providers are increasingly having to think not only about caring for children, but also about how the buildings themselves are powered and operated efficiently.