We tend to think about insulation as something that keeps our house warm, saving energy in the winter by keeping heat in. But a majority of the savings you can get from insulation occurs during the summer! Yes, you read that right. The same mechanism that keeps heat in during the winter, also keeps heat out during the summer.
Insulation works in the summer too?
Yes, insulation is not just for the winter. Insulation works by keeping the heat from your attic space from crossing over into your living space. This keeps your air conditioner from having to run, saving you a massive amount of money.
How do you calculate the payback for insulation projects like this?
We calculate payback by dividing the cost of construction by the yearly savings. As an example, let’s say you spent $4,500 on improving insulation around your house, in the attic, walls and crawlspace. If those changes saved you an average of $2,700 per year in reduced gas and electric bills, the math would look like this:
$4,500 / $2,700 = 1.7 years. This means that you will have gotten all of your money back through avoided energy costs. This is huge, because, after 1.7 years have passed, now you are basically making money! The savings lasts as long as you stay in the house, so it’s like you’re throwing away money if you don’t insulate to the tune of $2,700 per year.
What is a common payback period?
This really depends on the current situation of your home. If it’s really poorly insulated, any change will pay back really quickly. If your home is well-insulated, it can take much longer to pay back, so it will depend. But, in general, we have seen paybacks range from 6 months to 3 years as a common range for insulation projects.
What should I do next?
If you want to learn more about how fast an insulation project could pay back, we can help you with that calculation. If it’s going to be a 3 year payback period and you are planning to move next year, then obviously it’s not a great fit. (You should also keep in mind that insulation projects do raise the value of the home during a sale, so be sure to consider that as well.)
If you want to get some more details on how to keep your home cool in the summer and to see your energy bills plummet, give us a call at 888-776-1998 or visit our estimates page to schedule an appointment. We’re always happy to help!