Does Spray Foam Insulation Save Money?

If you're considering spray foam insulation, you probably already know that spray foam costs much more than other insulations. You may have read terms like "premium insulation" and "high performance," and you want to know how those labels translate financially. What kind of return on investment can you expect if you pay more upfront for spray foam?

It's natural to be curious about return on investment. We expect any product with a higher price tag to deliver better results. "Premium products" may last longer than competitors or offer better performance. You are not alone in wondering what spray foam brings to the table after splurging on it.

South Central Services has insulated hundreds of homes with spray foam insulation. When we chose what kind of insulation products to install, we picked spray foam because of its many benefits to homeowners. While spray foam is a significant investment up front, it does pay for itself over time through various cost savings.

By the end of this article, you will understand how spray foam insulation can save money. Specifically, you'll know:

• How spray foam saves money over time
• How spray foam impacts energy savings
• How spray foam impacts HVAC equipment

Don't have time to read right now? Check out everything you need to know at a glance.

How Spray Foam Insulation Saves Money

Spray foam insulation saves money in the long run. We call it an investment for a reason. Spray foam is more expensive than most other insulation products, but it also offers better features.

Some of those features, such as improved air quality or increased comfort, are not financially tangible. However, many features tie directly to long-term savings.

One aspect of spray foam insulation that will benefit you financially is its permanence. However, this article will explore the two main ways spray foam saves money: energy cost savings and HVAC equipment support.

Spray Foam Savings: Lower Energy Bills

Spray foam insulation performs better than fiberglass and cellulose. Each time an energy bill is delivered to your home, the efficiency of your insulation is reflected in the cost of heating and cooling. Homes insulated with spray foam have consistent and permanent drops in their energy bills.

Whether you're insulating a new construction home or retrofitting an existing house will impact how you see your savings. Let's examine each of these in more detail.

Spray Foam Insulation Savings In New Construction

If you're building a new house, you don't have energy bills to compare. While you can compare the costs of your current living situation to the new home, they are not directly comparable. It's hard for you as the homeowner to measure your savings, but you do save the most by insulating your home with spray foam from the start.

You can achieve a total air-seal by insulating your new house with spray foam. Air-sealed homes prevent conditioned air from exchanging with outside air. An air-sealed building is the start of maximum energy efficiency. Spray foam in a new home is worth the expensive price tag.

While you won't have an energy bill to compare and see how much you saved, you can assume that your energy bill would have been at least 30% higher without spray foam.

Spray Foam Insulation Savings In Retrofit Projects

For those retrofitting their existing homes, you have the benefit of being able to compare the before and after. You can see the difference between old and new energy bills.

Retrofitting jobs most often include attics, basements, and crawl spaces. Contractors can easily access these areas of the home. Adding spray foam insulation to these spaces offers the best ROI for existing homes. For example, attics are responsible for about 50% of the energy efficiency in a home. If an attic is poorly insulated, that job alone can significantly decrease energy costs.

Spray foam insulation cannot easily replace all home insulation. For example, insulating exterior walls with spray foam would require removing drywall. Not every homeowner is willing to dismantle their home for that energy efficiency upgrade. Unlike a new construction home, where every area of air leakage can be addressed at its root, retrofit projects only address the areas that are significant and accessible.

Sample Attic Savings Calculation

Let's look at an example. This example is based on averages, including the average utility bill cost in Pennsylvania, the average cost of attic spray foam insulation, and the average savings after insulating an attic with little-to-no insulation. This is not a real-world example because utility bill costs fluctuate each month and season.

A homeowner needs attic insulation. Their current energy bills are $250 a month, and they know their attic insulation is insufficient. They aren't interested in turning their attic into a living space. Their goal is to stop wasting money on heating and cooling.

The homeowner has a spray foam insulation contractor insulate their attic floor, creating a vented attic space. Their attic costs approximately $4,000 to insulate. The next energy bill they receive is $125.

Their energy bill decreased by 50% after insulating with spray foam. The monthly energy cost can pay for that spray foam investment in about 3 years when cut in half. Approximately 32 months later, the attic insulation is paid for. Every energy bill after the 3-year mark for this homeowner is 50% less expensive than if they hadn't insulated the attic with spray foam.

During the three years that the spray foam insulation was paying for itself, the homeowner was more comfortable, had better indoor air quality, and set their thermostat to milder temperatures during the extreme summer and winter months.

Had the homeowner not insulated with spray foam, they would have spent $8,000 on energy costs in those 32 months. Their energy costs would still be high, and they would receive no additional benefit.

Spray Foam Savings: HVAC Equipment Support

Spray foam insulation can save you money in a unique way: supporting the heating and cooling equipment in your home. Spray foam's premium performance not only impacts energy bills but also influences the systems delivering energy in your home.

Let's examine the two main ways that spray foam insulation can affect your HVAC equipment.

Spray Foam Insulation Helps HVAC Equipment Last

A home without spray foam insulation usually faces air leakage. Some air is exchanged between inside and outside, but the HVAC equipment does not control this exchange. The exchanged air could be dirty, humid, hot, or cold compared to the air that left the house. HVAC systems work overtime trying to manage air that leaks inside without permission.

The thermostat was set to a specific temperature, but leaked air changed the temperature inside. Now, the HVAC equipment has to adjust.

The house was cool, but humidity slipped inside, and now it feels sticky. The HVAC equipment has to pull the moisture content from the air.

In a home insulated with spray foam, air leakage is stopped. The only air exchange happens when doors or windows are opened and when the HVAC equipment is purposefully exchanging air. Without unforeseen variables, the HVAC equipment lasts longer. HVAC equipment will not need to be replaced or have replacement parts as quickly with the support of spray foam air-sealing.

Spray Foam Insulation Changes HVAC Equipment Needs

Adding spray foam insulation can make a home more efficient and make the existing HVAC system oversized. The existing system could offer more performance than necessary and therefore cost more to run.

For anyone building a new home, you can size your HVAC system from the start to best work with your insulation. If you spend more on premium insulation, you can spend less on your HVAC because you won't need as much performance from that system. In the case of retrofit projects, you may invest in a smaller system after the spray foam has paid for itself. An appropriately sized system will support energy efficiency and cost savings even more.

The Bottom Line About Long-Term Savings From Spray Foam

Spray foam insulation does save money in the long run. Whether you are insulating a new home or optimizing the home you have, spray foam will eventually pay for itself. Given enough time and energy bill cycles, the decrease in energy costs will add up to the insulation cost.

As you wait for spray foam to pay for itself, you can enjoy a home that is more comfortable to live in. You can experience fewer drafts, temperature fluctuations, and less thermostat cranking.

Now that you know how spray foam can save money, your next step is to:

• Calculate an estimate for spray foam insulation in your home
• Learn how to save money on spray foam through a federal tax credit
• Decide which type of spray foam is best for you