Industry Inclusion: Insulation Advocates Petition DOE for Equal Attention

Insulation is a critical element to indoor comfort. Properly installed insulation helps reduce the transfer of heat, providing occupants lower energy bills and more comfortable living spaces.

However, it's oftentimes overlooked because it's not seen or heard and lacks a replacement timeline. Per numerous insulation advocates, this appears to be the case regarding the U.S. Department of Energy's (DOE's) Savings Hub website and public education campaign, prompting a plea to U.S. Secretary of Energy Jennifer Granholm for more public information about this critical part of the efficiency equation.

The DOE's website, launched in April, is designed to make the forthcoming energy tax credits introduced by the Biden administration as accessible as possible, helping citizens take control of their energy costs in the name of a cleaner and more efficient existence. It's bursting with information, with links and tabs for homeowners, drivers, and renters interested in clean energy, artificial intelligence, and more.

However, one has to dig fairly deep to find any mention of insulation. In response, numerous industry associations — including the North American Insulation Manufacturers Association (NAIMA), Insulation Contractors Association of America, Cellulose Insulation Manufacturers Association, and others — penned a letter to Sec. Granholm with a request to correct the oversight.

"The reader must delve deep into the ‘Savings Hub’ website to learn that a robust tax credit is available for insulation and air-sealing upgrades," states the letter. "Moreover, they will find no mention of the ability of homeowners to take the 25C tax credit for both insulation improvements and qualifying heat pump upgrades in the same year.

"The primary purpose of insulation and air-sealing products is to reduce building energy use for the life of the building without the need for replacement," continues the letter. "Basic air-sealing and insulation upgrades to existing homes often result in energy savings of 10%-45%, depending on the climate zone. These upgrades can translate into substantial homeowner savings and meaningful climate reductions. Yet, despite these benefits, prompting homeowners to invest in insulation and air sealing can be difficult. Insulation is not driven by the ‘break and replace’ cycle that characterizes heating and cooling system replacement. Yet insulation and air sealing are critically important in ensuring proper heating and cooling system operations."

The letter suggests the DOE website prominently feature the benefits of insulation and the incentives available to homeowners under current legislation. Other suggestions include:

Curt Rich, president and CEO, NAIMA, said the insulation industry has been very supportive of the energy efficiency provisions included at the federal level. At the same time, he believes once incentives were passed into law, insulation failed to gain the notoriety it deserves.

"Our industry has been a vocal champion for an aggressive marketing campaign as part of DOE's rollout of these incentives," he said. "In our opinion, DOE's first public education effort in the form of the Energy Hub fell far short of what was needed. The fact that the Energy Hub gave short shrift to insulation and air sealing was probably just an innocent mistake by a website developer. To our industry, however, it exemplified what isn't working quite right in the rollout of billions of dollars of energy efficiency incentives."

Rich said knowledge is power and that educational messaging is best broadcast from the highest tower.

"A nationwide educational campaign is needed to raise public awareness of the benefits of improving the energy efficiency of your home and business," he said. "The federal government is best positioned to lead that campaign to ensure its investments are well spent and their climate goals are reached."

In 2009, Congress raised the limit on the 25C homeowner energy efficiency improvement tax credit from $500 to $1,500 for two years (2010-2011). During those two years, the number of taxpayers taking advantage of the 25C credit quadrupled.

The current 25C tax credit allows homeowners to claim the full credit for both insulation and HVAC improvements and HVAC replacement in the same year. Combine that with the fact that the 25C credit now stands at $1,200 for insulation, a similar surge in consumer interest is expected.

The letter's writers said the marriage between electrification and insulation is a match made in heaven. When electrifying a residence, the timeline of when each system is installed is important. The insulation industry said homeowners need to be made aware of this.

"A well-insulated home helps ensure it is truly ‘heat pump ready,’" states the letter. "Otherwise, installing a heat pump in a poorly insulated home could expose the occupant to dramatically increased heating and cooling costs. Such an outcome worsens the energy burden already shouldered by low- and moderate-income households. Additionally, improving envelope efficiency sometime after new heat pump installation can result in an oversized HVAC system, reducing its projected efficiency and adversely affecting occupant comfort. It is important that envelope efficiency and heat pump replacement are coordinated activities installed at the same time."

Ideally, any needed insulation upgrade would be completed before heat pump installation, said Jennifer Amann, senior fellow, buildings program, ACEEE.

"By insulating first, an HVAC contractor can install a heat pump that is optimally sized for the building's heating and cooling loads with the insulation," she said. "If the heat pump is sized for the uninsulated or under-insulated building, the equipment will likely be oversized once the heat pump is installed. While this is less of an issue with high-performing, variable-speed equipment, it can reduce overall efficiency and increase upfront costs since costs increase as capacity goes up."

The insulation industry stands ready to work with the DOE to see that recent incentives and investments in building energy efficiency are broadly adopted by the public and deliver deep carbon emission reductions, but they insist they can't do it on their own.

"When it comes to decarbonizing buildings, it all begins with a well-insulated and air-sealed building envelope," said Rich. "Educational initiatives, including recognizing insulation and air sealing as enablers of smart electrification, would help put us on that path."