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How Insulation Boosts Energy Efficiency and Lowers Costs in 3 Charts

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March 24, 2025

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Alan Kennedy

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The following content is sponsored by American Chemistry Council

How Insulation Boosts Energy Efficiency and Lowers Costs in 3 Charts

High-performance insulation is a cost-effective and reliable way to permanently reduce a building’s energy demand and carbon emissions over its entire service life. 

However, despite its ability to deliver significant economic benefits to homeowners and businesses, insulation is often undervalued or overlooked.

For this graphic, Visual Capitalist partnered with the American Chemistry Council. In it, we explore three reasons insulation can lower costs and reduce a home or business’s carbon footprint.

1: Improves Energy Efficiency

Improving a building’s energy efficiency by insulating its envelope is one of the most effective ways to lessen the strain on the energy grid and enhance energy reliability.

An airtight envelope ensures the building is properly insulated and minimizes heat or energy loss.

If the U.S. built all new buildings with a tight envelope, this could negate over 111 Mt of greenhouse gases (GHGs) annually—more than the combined GHGs produced by Israel and Norway in 2022.

Forecast Year GHG Emissions (Mt)
2022 0.00 Mt
2023 2.26 Mt
2024 4.84 Mt
2025 7.82 Mt
2026 11.22 Mt
2027 14.95 Mt
2028 19.04 Mt
2029 23.49 Mt
2030 25.81 Mt
2031 28.46 Mt
2032 31.39 Mt
2033 34.71 Mt
2034 38.34 Mt
2035 42.27 Mt
2036 45.35 Mt
2037 48.47 Mt
2038 51.43 Mt
2039 54.30 Mt
2040 58.20 Mt
2041 61.90 Mt
2042 65.80 Mt
2043 69.81 Mt
2044 74.38 Mt
2045 79.19 Mt
2046 84.82 Mt
2047 90.51 Mt
2048 97.20 Mt
2049 104.38 Mt
2050 111.74 Mt

2: Reduces Power Consumption

High-performance insulation not only provides multifunctional building envelope benefits but can also help reduce a building’s power consumption.

Many older homes in the U.S. lack insulation, while many newer homes are not sufficiently insulated. Raising a building’s insulation levels to current energy codes will significantly reduce energy consumption, as shown below for a typical home*.

Insulation Type Energy Consumption
No Insulation 100,725 kBtu
Basement + Attic Insulation 80,655 kBtu
Wall + Basement Insulation 73,037 kBtu
Wall + Attic Insulation 60,067 kBtu
Whole Home Insulation 55,478 kBtu

*Typical home in Climate Zone 5 covers North American locations with cold winters and temperate summers, such as Massachusetts, New York, and Ohio.

Insulating a home to meet modern U.S. energy code standards can reduce energy consumption by up to 45%. This decreases the building’s carbon footprint and enhances insulation’s carbon-saving benefits.

3: Lowers Overall Emissions

Insulating a home with high-performance foam plastic insulation can reduce a building’s carbon emissions by over 1,200 tons over its lifespan. Equipping the construction industry with tools to lower greenhouse gas emissions.

Insulation Lifetime Carbon Savings
Whole Home Insulation 1,185 t
Wall Insulation 635 t
Attic Insulation 462 t
Basement Insulation 137 t

A High-Performance Solution

Through foam-plastic, high-performance insulation, the construction industry can simultaneously reduce its emissions, minimize power consumption, and improve energy efficiency.

Explore the benefits of insulation

Related Topics: #energy #buildings #construction #efficiency #emissions #U.S. #plastics #insulation #high-performance

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