CENTRAL PENNSYLVANIA Blog

Insulation Is Providing Greater Return On Investment Opportunities

Insulation Is Providing Greater Return On Investment Opportunities

How to Find Your Return On Investment

In order to determine whether a project or new purchase has a favorable cost-to-performance ratio, you need to review the “return on investment” opportunity, which is more commonly referred to as the project’s ROI. Initially, the process for this calculation may seem complicated. Luckily, finding the ROI of your purchase is a straightforward “plug and play” system once you have all of the necessary information.

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’s 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.

ROI = Net ROICost × 100%

3 of Insulation’s ROI Opportunities

1. Lowering Energy Costs

If you’re already seeing an increase in the monthly heating and cooling bills, you’re often less inclined to spend more money. However, investing in replacing the old and deteriorated material and appliance throughout your home is often the best way to reduce climbing costs. While it may seem counterintuitive at first, this solution is one of the first suggestions that can save your household more money in the long run.

Some of the most significant contributors to steep energy costs could be poor insulation and air sealing! These materials are meant to improve temperature regulation and climate control within a building. Regularly maintained insulation reduces the rate of heat transfer, while air sealing improves indoor air quality. Irregular temperatures in the house are typically a result of heat loss, which means systems like your HVAC unit need to run more often and for longer periods of time to keep up with your thermostat.

Reducing your energy costs is one of the first ways updated material improves return on investment for the project. An increase in uncomfortable drafts and cold spots are common signs that you need to contact your local insulation professionals. For more information on how Koala Insulation of Central Pennsylvania helps to outline your energy savings from updated insulation and air sealing, take a look at our energy payback breakdown.

2. Reducing Fees From Damages

We mentioned earlier that neglected and deteriorated materials means your HVAC needs to run more often. On top of an increase in energy bills, this could also potentially increase the need for maintenance and replacements. If your AC and furnace need to kick on frequently in order to regulate temperature lost from unregulated heat transfer, there’s a higher chance of damage. The frequent use could even mean you need to replace parts of the system sooner!

Unfortunately, there are many homeowners that will chalk up frequent usage to extreme temperatures throughout the year or the changing of the seasons. However, it’s important not to make the mistake of continuously blaming severe weather for your higher usage and energy waste. You also shouldn’t have to suffer in discomfort just to give the HVAC system a break, since this could be just as damaging to your household’s health.

Instead, regularly scheduled material evaluations can solve many problems that are the cause of subpar HVAC performance. Although you may already be familiar with the material in your attic did you know you can also find insulation throughout the rest of the building? Your home needs to have adequate material in key places like these:

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

These areas need to be regularly evaluated for deterioration and damage. With fast and effective industry practices such as thermal imaging, Koala insulation of Central Pennsylvania can help you reduce repair and replacement costs. They assist you and your household in determining where newer insulation may need to be installed in order to keep the house safe, comfortable and temperature regulated.

3. Increasing Energy Efficiency

There’s also ways to consider a return on investment outside of monetary gain. While it’s great that new insulation and air sealing can increase your savings, regular removal and replacement significantly improves the energy efficiency of your home. Less material is needed in a properly maintained space, the house uses less energy, and the environment is effectively climate controlled. Combining these factors contributes to a reduced carbon footprint and a more energy efficient building.

On one hand, replacing insulation yourself can be an interesting DIY project if you have the necessary handyman experience. However, this could still mean excess landfill waste, misused products, and potentially ineffective installation. Working with experienced insulation professionals helps to introduce you to cost-effective and recycled materials. On top of this, your household can learn more about how the choices you make impact your community!

A positive return on investment is about more than just saving on monthly bills and replacement parts for your HVAC system. Instead, your ROI evaluation should also encompass other areas of your quality of life. Taking the time to ensure the house is energy efficient and uses quality products from environmentally friendly companies ensures that you’re also investing in the healthy lives of yourself and those around you.

Find Better Savings with Local Industry Professionals

It’s time to start thinking outside of your typical box for cost-effective and energy-efficient solutions that improve your environment. Simple steps like regularly evaluating and updating your home’s insulation and air sealing can not only significantly improve the comfort and safety of the house but also reduce monthly spending.

Koala Insulation of Central Pennsylvania helps increase the savings of your household by offering free evaluations. These inspections can provide you with a better understanding of your home’s current condition in terms of insulation and air sealing needs. With this information, you can target pain points while also taking the budget and schedule of your household into account. Contact Koala Insulation of Central Pennsylvania today to schedule your free evaluation and learn more about how updated insulation and air sealing could be improving your savings.