What is the ROI on Installation Insulation?

The return on investment (ROI) for insulation installation can vary depending on several factors, such as the type of insulation used, the size of the property, local climate conditions (since we are in Wisconsin the conditions are either freezing cold or hot and humid most of the year!), energy costs, and the efficiency of the existing insulation. In general, adding insulation to a property can lead to significant energy savings and various other benefits for Wisconsin homeowners, which contribute to its overall ROI. 

Here are some key points to consider when calculating the ROI of insulation installation: 

  1. Energy savings: Insulation helps maintain a more stable indoor temperature, reducing the need for heating in winter and cooling in summer. This leads to lower energy consumption and utility bills over time. 
  2. Cost of insulation: The initial cost of insulation materials and installation will impact the ROI. Some types of insulation may be more expensive, but they could also offer better long–term benefits. 
  3. Tax incentives and rebates: Some regions offer tax credits, rebates, or incentives for installing energy–efficient insulation, which can positively affect the overall ROI. 
  4. Property value: Improved energy efficiency and reduced utility costs can increase the property’s value, indirectly contributing to the ROI. 
  5. The lifespan of insulation: Different insulation materials have varying lifespans. Consider the durability and expected maintenance costs over the insulation’s life. 
  6. Climate and energy prices: Wisconsin’s climate and energy costs play a significant role in determining the energy savings and, subsequently, the ROI.. 

Here is how our energy experts at ARC Contracting calculate the ROI: 

ROI = (Energy Savings per Year – Insulation Installation Cost)/Insulation Installation Cost 

At ARC Contracting, we have energy experts that come to your home to do an energy analysis to get a better understanding of what you could be saving on energy costs by upgrading your insulation. To schedule a free energy consultation, call 888-743-8086

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