Insulation is one of the few home improvements that pays for itself through ongoing savings. But how quickly, and how much? Here's what the data shows.
Average Energy Savings by Project
- Attic insulation (to R-49): 15-25% reduction in heating/cooling costs
- Air sealing + attic insulation: 25-40% reduction
- Crawl space insulation/encapsulation: 10-20% reduction
- Wall insulation (retrofit): 10-15% reduction
- Full home insulation upgrade: 30-50% reduction
Payback Periods
For an average Indianapolis home spending $2,400/year on heating and cooling:
- Air sealing: $500-$1,500 investment → 1-2 year payback
- Blown-in attic insulation: $1,500-$3,000 → 2-4 year payback
- Crawl space spray foam: $3,000-$6,000 → 4-7 year payback
- Whole-home upgrade: $5,000-$12,000 → 5-8 year payback
Impact on Home Value
According to the Appraisal Institute, home value increases approximately $20 for every $1 reduction in annual energy costs. A $600/year savings from insulation upgrades translates to roughly $12,000 in increased home value — often exceeding the cost of the improvement.
Available Incentives
- Federal tax credits: The Inflation Reduction Act provides tax credits for qualifying insulation and air sealing work
- Utility rebates: Indiana utilities offer rebates for energy efficiency improvements
- Financing: Many insulation projects qualify for energy-efficiency financing programs
Contact us for a free estimate with projected energy savings for your specific home.