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What Does It Cost?

Insulation for Free

We install several different high performance insulation systems, as do several of our competitors. I am getting tired of builders who say ‘I can’t sell those EXPENSIVE systems to ‘normal’ homeowners’. They define ‘normal’ as people like themselves and me, who have to deal with a middle class budget.

The term ‘Expensive’ is extremely relative. Adding foam to a 24x40 ranch house will make a mechanical ventilation system necessary. The package price for the insulation system from the rim joist up, using R-21 foam in the walls, and R-38 cellulose in the attic floor will be about $5000, adding an HRV will cost another $ 3000 +/- if you use the heating ducts to distribute fresh air. Insulated conventionally with fiberglass walls and cellulose attic, the insulation could be done for as little as $ 1850, and most guys wouldn’t install an HRV. That would be a 1980 spec. The difference in cost is $ 6150. I would venture to say the potential buyer could easily spend that $6150 by upgrading any of dozens of finishes, flooring, counter tops, cabinetry, plumbing fixtures, lighting, etc. etc.

Forgetting for a moment that technology in all other areas of life has advanced in quantum leaps since 1980 and this industry is no exception. Forgetting that we are in the middle of an energy crisis again. Forgetting that single family homes are the worst polluters in America right now. (When did you last tune up your car? When did you last tune up your furnace? When did the EPA last visit your home and tell you to put a filter on the smoke stack? Point made) Forgetting that people commonly change finishes in bathrooms and kitchens in less than 10 years just because they are bored with the appearance. What does it really cost to insulate properly?

Here is the rub; $6150 over a 30 year mortgage at 6% costs the owner $ 36.87. On a 15 year mortgage at 6% it is $51.90. The savings in fuel use will exceed that immediately, and likely will exceed it by a larger number every year that owner is in the house. This ‘luxury’ will pay a positive return on investment from the date of installation for as long as the house is occupied. Not only that, it will assure your customer that they have clean, dry, comfortable air in the house every day all year. They will not get colds as often, their kids will miss less school, their rooms will all be comfortable, there will be no mold in the house, less noise will invade from outside, you will get less call backs, and they burn less fuel, so they produce less green house gasses and spend less money over time.

Of course the incremental cost to use these products is BIG as compared to the cost of a batt insulation job. Of course it will be quite substantial on a multi level house with overhangs, cathedral ceilings, etc. But, the amortized cost is not as high as the incremental savings in fuel use. That spread will increase over time. The client will have more money to spend on life’s everyday happenings. Those homeowners who make this selection will be able to afford to add better finishes and fixtures after they are in the house.

The problem is clients only get one chance at this. Once a house is built, it is virtually impossible to remove all the insulation from the walls and replace it with a different technology. That is not true for those counter tops, the flooring, the carpets, cabinets, plumbing, lighting, exterior finishes, and all those other things that keep remodeling contractors so busy all the time. I know, the insulation is not as cool as granite counter tops, chic as marble tile, or exotic as cashmere carpet. But it also is not susceptible to those common household hazards that destroy those items. The dog wont soil it, kids wont color it for you, and your neighbor won’t buy something better next year and make you wonder why the %$@#$ you chose that *&%^ thing in the first place.

Try telling the client that if they give you $ 40 per month every month for 30 years, their house will give them $ 44 per month back, help reduce greenhouse gas emissions, and make their life easier to boot. I cannot usually make this point because I am not aware of the job until financing is already done, and the owners are already mired in selecting finishes and fixtures. Architects are in the best position to make this point; builders are in the next place.

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