The £1 billion opportunity within the NHS

Lighting the way: How the NHS can unlock £1 billion in annual savings

Walk into almost any NHS hospital today and you’ll see the signs of progress. In Plymouth, new LED lighting at University Hospitals Plymouth NHS Trust is cutting 77% of lighting energy costs, saving £1.7 million over 10 years, with payback in just over two years. In North London, Barnet, Enfield and Haringey Mental Health NHS Trust has combined LED with solar PV and EV charging, cutting carbon and easing costs for staff and visitors.

These are powerful stories. They show the NHS is transitioning its estate, step by step. But they also highlight something bigger: there’s still a long way to go, and the opportunity is much larger than many realise.

Beyond the obvious.

The NHS spends more than £1 billion annually on energy. Lighting alone often accounts for over a third of hospital electricity use. Switching to LED delivers immediate savings—typically cutting lighting costs by 50–70%.

But that’s only the beginning. The full prize comes from combining LEDs with smart controls, energy analytics, and high-quality procurement. Add in the maintenance savings (especially in wards where lights burn 24/7), and the NHS could save close to £1 billion every year.

The breakdown.

• LED lighting: Internal and external upgrades save £250–350m per year.
• Smart controls: Sensors and daylight dimming add another £80–150m per year.
• Energy analytics: Circuit-level monitoring to catch waste saves £120–170m per year.
• Maintenance savings: Long-life LEDs reduce relamping and disruption, worth £100–150m per year.
• Quality procurement: Avoiding early failures with European-made products protects £50–100m per year.

Together, this reaches £600–920m annually. Factor in avoided costs of delay, and the case for £1 billion a year is credible.

More than money.

Lighting is not just about savings. Good-quality LED lighting has been shown to:

• Support patient recovery by reducing anxiety and improving sleep in wards with little daylight.
• Create safer, healthier working environments for NHS staff, reducing fatigue and improving focus.

In Plymouth, over 1,900 LED luminaires are already delivering both savings and better light for staff and patients. In Barnet, LEDs combined with solar and EV charging are transforming the Trust’s sustainability footprint while cutting costs.

A great opportunity, but work to do.

Today, around half of the NHS estate has made the switch to LED. That’s progress—but it also means thousands of wards, corridors, and clinics are still lit by outdated fluorescent lamps. Each year of delay represents hundreds of millions in lost savings—funds that could instead be directed to frontline care.

National funding schemes like the NHS Energy Efficiency Fund (NEEF) and Public Sector Decarbonisation Scheme (PSDS) are helping. But demand outstrips supply, leaving many Trusts waiting.

This is why innovative finance is so important. At eEnergy, we support Trusts accessing grants, and where that’s not possible, we provide access to a £100m off–balance sheet funding facility. It means Trusts don’t have to wait—they can cut costs and carbon today.

Lighting the future.

The NHS is rightly ambitious about Net Zero. But sometimes the most effective step is also the simplest: change the lights.

The opportunity is clear:

• £1 billion in annual savings.
• Improved patient and staff environments.
• Reduced carbon footprint across the estate.

The transition is already underway. The question is whether the NHS can accelerate it fast enough to capture the full prize.

Footnotes / Sources.

1. NHS England, Delivering a ‘Net Zero’ NHS (2020).
2. Grant Thornton, ERIC Data 2023 – State of NHS Assets.
3. NHS Improvement, Energy Spend Data.
4. Carbon Trust, Lighting Guidance and Controls Savings.
5. UK Energy Technology List (aM&T equipment buyer note).
6. NHS Property Services case studies on LED lighting.
7. Carter Review of NHS Efficiency (2016).
8. BMJ Open Quality – Impact of lighting on patient outcomes.
9. Barnsley Hospital NHS FT – Sustainability Reports.
10. University Hospitals Plymouth NHS Trust and Barnet, Enfield & Haringey NHS Trust case studies (eEnergy).