NW JACKSONVILLE Blog

Increase Return On Investment Opportunities with Updated Insulation

What is a Return on Investment?

More commonly referred to as ROI, return on investment is the cost-to-performance ratio of a project. In order to determine whether a project, new purchase, or renovation has a favorable outcome, reviewing the estimated ROI can help you make more cost-effective decisions.

Initially, this calculation may seem complicated, especially if you're not used to finding the information yourself. Luckily, it's a straightforward "plug and play" system once you have all of the correct numbers.

First, you need to find the Net ROI: take the final value of your investment (FVI) and subtract the initial value of the investment (IVI). The Net ROI represents the estimated energy savings, which you can easily compare to similar homes in your area with this helpful tool from the EPA.

Next, divide this result (the Net ROI) by the Cost of the project, which gives you the final value. If you're trying to calculate the ROI percentage, you simply multiply the result by 100%. For more information on how you can find the correct values for these equations, check out this explanation on Investopedia.

3 Opportunities to Increase ROI with Insulation

1. Reduce Your Energy Costs

Although it may seem counterintuitive at first, taking the time to upgrade your insulation can actually help you lower monthly costs. If you’re seeing a rise in your regular heating and cooling bills, this is likely due to a poorly insulated building or deteriorated material.

Poor insulation and air sealing are two of the most likely culprits to steep energy costs for any property owner. These materials are designed to improve temperature regulation and climate control. While regularly updated and maintained insulation reduces the rate of heat transfer, air sealing improves indoor air quality and climate control by reducing air leaks and drafts.

Irregular temperatures in your home are generally a result of unregulated heat loss. This leads to systems like your HVAC unit working overtime to keep up with the desired temperature on the thermostat. Regularly maintaining your home's insulation and air sealing has a positive return on investment by reducing the need to run your HVAC system while also increasing comfort.

2. Lower Risk of Damages

On top of reducing the cost it takes to run your HVAC unit more often, replacing old and deteriorated materials can also help you lower the risk of damage to your home. When your HVAC system needs to run more often, this puts unnecessary strain on the unit which can decrease the lifespan while also increasing the risk of maintenance needs.

Instead of using the weather changes as an excuse to continuously change the temperature on your thermostat, an insulation evaluation could uncover the real threat. Higher usage and energy waste are more likely to come from inadequate coverage allowing conditioner air and heat to escape rather than the changing of the seasons.

If you're experiencing subpar HVAC performance, you could be spending more money not only month-to-month but even in the long run. Did you know that there's insulation throughout your home that needs to be updated in order to support this system? You need adequate coverage and maintenance around every room in the house:

• In between ceiling joists
• Under the floor
• Inside walls

With recent advancements in research and technology within the industry, Koala Insulation of Northwest Jacksonville uses practices like thermal imaging to help reduce repair and replacement costs. Our team of industry experts helps assist you and your household determine where you may need to install new insulation to help keep your environment safe, comfortable, and temperature regulated.

3. Improve Energy Efficiency & Value

It’s also important to remember that return on investment isn’t always for monetary gain. While it’s certainly important to lower your monthly costs and damage potential through new insulation and air sealing, regularly retrofitting your materials significantly improves the energy efficiency of the house.

By consulting a local industry expert on what type of material best suits the needs of your home, less material is needed to properly regulate the temperature, your home uses less energy, and your environment is kept comfortable. These factors combined can contribute to a more energy-efficient space while reducing your carbon footprint.

When it comes to considering the ROI of a project, take into consideration the influence on your quality of life and the longevity of your environment's comfort. In fact, this is even an important consideration that homebuyers look for when purchasing a new property. So, in the end, it still increases your monetary gain by improving the value of your home! Take the time to ensure your house is energy efficient and use quality products from environmentally friendly companies to improve the livelihood of your home, household, and future inhabitants.

How Can You Increase ROI in Jacksonville?

Whether you’re a homeowner that keeps the future in mind at all times or you’re getting ready to put your house on the market, home improvements should be about comfort, safety, and savings. At Koala Insulation of Northwest Jacksonville, our team of industry experts works to bring cost-effective and energy-efficient solutions to our community.

With our free evaluations, our team of industry experts can help you learn more about the current condition of the materials in your home. This allows you to target pain points and schedule future projects while taking into account your household’s schedule and budget. For more information on how you can improve your return on investment opportunities, contact Koala Insulation of Northwest Jacksonville today to schedule your free evaluation.