Payback Now and Later
Accumulating monthly utility savings adds up and by most accounts the total financial investment is paid for between four and six years for new construction. If like most homebuyers, the property is mortgaged, any additional financing costs associated with upgrading to SPF are typically offset by month-to-month utility savings greater than paying the financed SPF costs – a net savings right off the bat. And an energy efficient home is more attractive to buyers and will fare better on the market if and when one decides to list the property. Between the additional value brought to the home using SPF, the month-to-month net savings, and the short-term ROI, spray foam makes real financial sense. Not investing in spray foam is what costs money.
For example, a spray foam job costs $5000. Assume 80% of the price will be financed, resulting in a $4000 loan and $1000 down payment. A 7% monthly interest rate means the loan would increase at $26.60 per month.
Let's Review This...
• Invest $26.60 per month and get back $80.
• Estimated Avg. Monthly Heating/Cooling Cost $200
• Avg. 40% Saving per Month with Spray Foam $80
• Yearly Savings with Spray Foam $960.
You save almost $1000 per year in energy costs. If you take the $1000 per year and divide it by the $5000 cost, you get a 20% return on your investment every year. Once it is completely paid off, it keeps paying you.