How much money can I save by adding insulation to the walls, ceilings, and floors of my home?
Recent increases in home energy costs have many homeowners looking for ways to lower their usage
and bills. Is insulation really worth the cost? Across the board the experts answer with an emphatic “Yes!” and for three reasons:
- Energy Savings
- Rebates/Credits/Incentives
- Increased Home Values
Home Insulation is Proven to Lower Energy Bills
Consider the findings and recommendations of two authorities, the Department of Energy (DOE) and the Environmental Protection Agency (EPA):
According to the DOE, if homeowners add insulation to attics, floors, crawl spaces, and accessible basement rim joists along with addressing unwanted air leaks, a savings of up to 20% can be expected on a home’s total heating and cooling costs. This is usually about 10% of the overall energy costs (heating & cooling represents around 40% of the total of most home energy budgets).
How about the EPA? This independent governmental agency performed careful research that took into consideration the average home’s age, construction characteristics according to region, geographic climate factors, and each area’s predominant fuel-type characteristics. Their study determined that homeowners can save 15% of their heating and cooling costs (estimated at 11% of total energy costs) on average when they seal air leaks and add insulation that increases R-value to attics, basement walls, and floors above unconditioned basements and crawlspaces. Savings specifically in Southern California (zones 2 & 3) are calculated to be from 9%-14%.
Tax Credits, Incentives, and Rebates for Home Insulation
Federal tax credits for insulation installed in 2023 and later provide reimbursement for homeowners of up to 30% of the cost of the project (this represents an increase over previous years’ credits). Typical products covered include batts, rolls, blow-in fibers, rigid boards, spray foam insulation, and pour-in-place insulation. You can claim up to $1,200 in tax credits per year for adding insulation to your home. Details can be found at https://www.energystar.gov/about/federal_tax_credits/insulation.
Your local utility company can also recommend applicable programs for saving money on home insulation. Some may help cover the cost of a home energy audit to identify which areas most need insulation and sealing to maximize your return on investment. Searching online for state and federal incentives and rebates will identify up-to-date opportunities for saving on your project.
Upgrading Insulation Increases Home Values
There are ongoing studies proving that homebuyers are willing to pay higher prices for green upgrades. The Green Label Rebate Program and Energy Upgrade California in Los Angeles County recently partnered to fund three case studies that demonstrated homes with green upgrades such as improved insulation sold for an average of 9% more than homes without these energy-efficiency improvements. Such upgrades appeal to environmentally conscious buyers and to those in more extreme climates where the comfort and consistently lower utility bills make it worth the higher purchase price, especially when the work has already been done for them.
Start Saving Money by Adding Home Insulation
Specific insulation costs will depend on the R-value and the type of insulation you choose. All Type Insulation Inc is a qualified contractor who can inspect your home and help determine where insulation is needed and what R-value is most appropriate. Adding insulation to under-insulated attics, crawl spaces, and walls as well as adding blown-in insulation into an empty wall cavity prior to installing new siding are all recommended by reputable authorities. These are reliable methods of saving energy and money while making your home more comfortable and valuable.
If you are looking to start the savings now without the upfront costs, contact us about financing options for your insulation project.
