BioGreen Energy Solutions
Investment Payback PDF Print E-mail

The question is often asked..."What payback period can I expect for my investment in insulating my home with spray foam insulation?"

There is no definitive answer to this question as there are so many variables that determine the exact payback period.  A few of these variables are:

  • The percentage of your utility bill that is currently for air conditioning and heating?
  • Are you already very efficient in the use of your air conditioning and heating, and don't mind "toughing out" the hot summer days and cold winter days?
  • Is your AC currently sized correctly?
  • How high is your current power bill?
  • How energy efficient is the rest of your home?  Rubber seals, water heater efficiency, direction the home faces, efficient use of lighting and water, etc.

Given these factors, a general rule for payback on the investment is as follows:

The payback on the investment:

A 2,000 square foot home with a standard 6-12 roof pitch would cost between $3200 and $4200 for spray foam insulation on the underside of your roof deck.  A number of variables affect the specific price of your project such as project size, accessibility of the attic, project location, existing v. new construction, roof pitch, etc.  If your average monthly utility bill was $320 and you could save 25% on this utility bill through energy efficiency, this would be approximately $80/mo or $960/year.  Given this savings, the payback period would be approximately 3.5 years.  If you include the $1500 federal tax credit as well as local credits (local energy company) then the payoff is closer to 1 to 2 years.  So...it is a good investment that will pay for itself within a few years.  It is also a great selling feature when selling your home, as spray foam is becoming more and more well-known as the gold standard in home insulation.