How Home Insulation Helps Reduce Your Energy Bill - This Old House

One of the main reasons your energy bills might spike is that your home isn’t properly insulated. A well-insulated home is a surefire way to help keep your power bill manageable and make your home more environmentally friendly. So, how does home insulation reduce energy bills? Let’s take a look.

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Understanding Home Insulation and Its Benefits

Insulation helps to reduce heat transfer by trapping tiny air pockets. In the winter, it can keep warm air inside, and in the summer, it can stop hot air from coming inside. There are many different types of insulation materials and methods of applying it. Ultimately, the right one depends on your specific needs.

Insulation’s performance is measured by a number called “R-value.” The higher the R-value, the more effective the material is.

Signs Your Home Needs Better Insulation

Here are a few signs that it might be time for new insulation:

• Drafts near windows and doors
• Excessive dust in your home, which can indicate air leaks
• Ice dams forming on your roof in winter
• Uneven temperatures between rooms
• Walls, floors, or ceilings that are cold to the touch

Your energy bills can also clue you into how your insulation is doing. If your bills are consistently high or higher than normal or your energy usage spikes in extreme weather, your home might be gaining or losing heat too quickly.

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Types of Home Insulation Materials

Here are a few of the most common insulation materials:

• Cellulose insulation: Cellulose insulation is an eco-friendly, pest- and mold-resistant option made from recycled paper products. It’s typically blown into attics or wall cavities and treated with fire retardants. 
• Fiberglass insulation: Fiberglass is one of the most widely used insulation materials for its affordability and fire resistance. You can buy it in pre-cut panels that fit between wall studs, attic rafters, and floor joist. It’s also available as blown-in insulation that works well for attics and hard-to-reach spaces.
• Natural fiber insulation: Biodegradable wool, cotton, or hemp insulation is gaining popularity among environmentally conscious homeowners. It provides good thermal resistance and is often treated with natural fire retardants.
• Rigid foam insulation: Rigid foam boards are typically made from polystyrene, polyisocyanurate, or polyurethane. They provide high R-values in a thin package, making them ideal for foundation walls, concrete slabs, and exterior walls.
• Spray foam insulation: Spray foam insulation comes in open- and closed-cell varieties. Both types expand to fill gaps and cracks. Open-cell spray foam is lighter and less expensive but has a lower R-value. Closed-cell is more expensive, but its density contributes to a higher R-value and helps block moisture.

Where to Install Insulation in Your Home

To maximize energy savings, focus on insulating these parts of your home:

• Attics: Attics are often the most important area to insulate because, with rising heat, they’re a prime spot for energy loss. Better attic insulation, even by itself, can make a valuable dent in your energy bill.
• Basements and crawl spaces: Basement insulation helps prevent heat loss through your foundation. It can also help fight moisture issues and water damage.
• Ductwork and pipes: Duct and pipe insulation can improve your HVAC and water heating systems’ efficiency.
• Walls: Insulating your walls can be more challenging, especially for existing homes. However, the right wall insulation is crucial for your comfort.

Calculating Potential Energy Savings from Insulation

Some homeowners may balk at the cost of new insulation. According to Angi, it can fall between $1,065–$2,630. However, with proper planning, the benefits can quickly overshadow the initial price. “It’s the wisest way to invest that I know of,” says This Old House general contractor Tom Silva. “A well-insulated house will make you more comfortable in every season. And it’s quieter, too.”

The Environmental Protection Agency estimates that the average homeowner can save 15% on heating and cooling (11% of total energy costs) by insulating their basements and attics. With the average cost of most insulation types hovering around $0.40 to $6.75 per square foot, you can do the math to understand the savings you’d see over time after upgrading your home’s insulation.

Well-insulated homes also command a higher market value, and you may be eligible for tax incentives to help finance the upgrade. These programs are subject to change, so it’s best to speak with a qualified tax preparer to understand current regulations.

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