Insulation: The Smart Investment

Putting Money Into Added Insulation Is a Good Financial Choice

Alexandria, VA (October 29, 2002) – One of the smartest investments homeowners can make to improve the energy efficiency of their home is to install or upgrade their insulation. So, in support of the Department of Energy’s Energy Awareness Month, the North American Insulation Manufacturers Association (NAIMA) is encouraging consumers to make an investment in fiber glass and mineral wool insulation as well as other ENERGY STAR^® products to save energy and put their dollars to good use.

In today's economy, investors face more complex investment choices than in past years, and making a sound financial decision is tough. While riding the Dow may be attractive to some, the "smarter" investor looks closer to home. He or she knows that the biggest single investment the average American family makes is their home. Investing in products to make homes more energy efficient pays significant dividends over a lifetime – with none of the fluctuations of Wall Street.

Consider the dividends of improved insulation:

Lower Utility Bills

Most homes in the United States are not well insulated. Older homes are particularly vulnerable, leading to high heating and air-conditioning use. Even if a house is relatively new, it still may be beneficial to add additional insulation to help reduce energy usage.

Built-in Savings

Consumers considering buying a new home, should look at buying an ENERGY STAR Home. A home that is designated as an ENERGY STAR Home is one that is built to use at least 30% less energy than the Model Energy Code. ENERGY STAR Homes feature improved insulation, tightly sealed construction, sealed ducts, high performance windows and high-efficiency heating equipment.

Financial Incentives

New and existing homeowners are being encouraged to improve energy efficiency through a number of state and local tax incentives and rebates. Find out more at www.SimplyInsulate.com, a Web site that helps consumers make smart choices about insulation. The site provides a database of information pertaining to state and local tax incentives and rebates which is updated continuously.

Other incentives homeowners should explore are Energy-Efficient Mortgages (EEM), which may allow owners to qualify for a larger mortgage by allowing a higher debt-to-income ratio than lenders normally use to calculate loan potential. Some mortgage companies are known to provide other incentives like cash back at closing and interest rate discounts for energy efficient upgrades and purchases.

Increased Resale Value

A study published in 1999 by the Journal of the Appraisal Institute found that buyers are willing to pay more for energy-efficient homes if anticipated fuel savings exceed mortgage-interest costs for the price difference. The study indicated that a $420 annual savings in utility costs will add $8,400 to the market value of a home, or two to four times what it cost to upgrade the home. To find out more about ENERGY STAR Homes visit the ENERGY STAR web site at: www.energystar.gov.