Beyond Initial Costs: Why Building with SIPs Leads to Long-Term Savings

How much do SIPS really cost?  When it comes to construction, cost is king.  However, when diving into the depths of building material expenses, the bottom line isn’t always as simple as the material costs. Particularly when one material choice impacts other components, as seen with high-performance SIP commercial and residential structures. Because of this, the figures presented on the surface often fail to capture the full story. And let's not forget, opting for the cheapest option isn't always the wisest choice.

For Structural Insulated Panels (SIPS), the upfront material price tag might be a bit higher than the traditional site framed stick framed building. The reason for this is simple - the fabrication is done in a factory and includes labor! Whereas with site framing, fabrication of walls, roofs, and floors is done manually on site.  This is just one of the many reasons why solely evaluating based on material price overlooks the extensive cost savings and benefits that other building components in a building assembly benefit from. Let’s unravel the complexities behind the cost of SIPS that translate beyond straight material costs into builder time savings, reductions in ancillary costs, and reduced operating costs over the building's lifespan. 

⇒ COST COMPARISONS:  With this article focused on beyond the initial costs of building, dive deeper here into cost comparisons between SIPs and sticks.

Energy Efficiency and Operational Savings

SIPs slash heating and cooling energy demands by at least 60% compared to conventional stick-framed buildings, leading to substantial cost savings and reduced monthly expenses.

One of the most significant advantages of SIPs is their exceptional energy efficiency. These panels provide superior insulation properties, providing a tight building envelope that minimizes heat loss and air infiltration. As a result, buildings constructed with SIPs require significantly less energy for heating and cooling, translating into substantial operational savings over the lifespan of the structure. With rising energy costs, the importance of this ongoing economic benefit cannot be overstated.  This Green Builder Media's 2023 Green Home of the Year by Clifton View Homes is the perfect example of how SIPs create a tight, energy-efficient structure.

⇒ VIEW PORTFOLIO:  Get a glimpse of extreme energy saving projects! Take a peak through our portfolio of high performing commercial and residential projects to see some off the charts net-zero, positive energy, Passive and LEED Certified Premier SIPS buildings across North America.

Reduced Builder Callbacks

Utilizing an engineered offsite system like SIPs, builder callbacks can be reduced by more than 50%.

Builder callbacks can be a significant source of frustration and financial strain for both builders and homeowners. However, research has shown that by utilizing an engineered offsite system like SIPs, builder callbacks can be reduced by more than 50%. This reduction not only saves time and resources but also enhances customer satisfaction by minimizing disruptions and delays.  Straighter roofs, walls, and floors that don't bow, warp, or bed.  With fewer callbacks, trades are spared the need to revisit sites for repairs, leading to improved efficiency and increased cash flow for builders.

Durability and Maintenance Savings

SIPs are 2x as strong as stick-frame construction.

SIPs are renowned for their durability and structural integrity. Unlike traditional building materials, such as wood framing, SIPs are resistant to warping, rotting, and pest infestations. As a result, buildings constructed with SIPs require minimal maintenance over their lifespan, saving homeowners both time and money on upkeep and repairs. Additionally, the longevity of SIPs ensures that structures maintain their value over time, providing peace of mind to homeowners and bolstering their investment.  Bonus: with Premier SIPS, our product comes with a 20-year warranty because we know that it will stand the test of time. You don’t see that with stick-framed construction.

Environmental Benefits and Cost Reductions

Offsite factory fabrication eliminates more than 30% of typical construction waste and associated costs.  SIP structures produce 45% less CO2 emissions per year.

In an era of increasing environmental awareness, building with sustainable materials has become a priority for many builders and homeowners. SIPs offer significant environmental benefits, including reduced waste during construction, lower energy consumption, and the use of renewable resources. By choosing SIPs, builders can not only reduce their carbon footprint but also capitalize on potential cost savings through incentives and certifications for green building practices.

Tax Savings

Buildings account for over 40% of energy consumption and emissions, making it no surprise that the 2023 Inflation Reduction Act (IRA) targets this straightforward approach to reducing energy consumption via the built environment.

Energy-efficient building envelopes like SIPs qualify for significant energy tax incentives. Federal incentives range from $2,500-5,000 per residential dwelling unit directly for the builder. For commercial projects, incentives can reach up to $5.00 per square foot to the building owner, architect, or engineer. State, county, city, and many utilities offer additional incentives per region. Getting money back because you designed and built responsibly is a benefit to the bottom-line budget and the planet. 

⇒ ENERGY EFFICIENT TAX CREDITS:  Dive into all tax incentive savings for commercial and residential SIP projects here. 

Resale Value and Market Perception

LEED buildings use 25% LESS ENERGY and have 19% LOWER maintenance costs, highlighting the long-term value of choosing SIPs for construction.

Beyond the tangible financial savings, building with SIPs can enhance the resale value of properties and improve market perception. As more consumers prioritize energy efficiency, durability, and sustainability, homes constructed with SIPs are perceived as premium investments that offer long-term benefits.

This positive market perception can translate into faster sales and higher resale prices, further solidifying the economic advantages of building with SIPs.  Additionally, more residential and commercial projects are being built to LEED (Leadership in Energy and Environmental Design) standards, and Premier SIPS' structural insulated panels play a leading role in achieving high LEED ratings. 

⇒ LEED CERTIFICATION:  Discover the power of Premier SIPS in LEED Residential & Commercial Building Certification

The Bottom Line

While the initial costs of building with SIPs may be higher, the long-term savings and additional benefits make them a smart choice for both builders and homeowners and deliver a project that has overall higher long-term value. By evaluating SIPs on a net-cost basis and considering the operational and investment of a higher-valued structure, owners, designers, and builders can make informed decisions that lead to cost-effective, sustainable construction projects. With SIPs, the path to long-term savings and superior building performance is clearer than ever before. 

Contact your local Premier SIPS Rep to learn more!