The rising cost of natural gas is a pressing concern for homeowners and businesses. About 60% of U.S. homes use natural gas for space and water heating, cooking, and drying clothes. Natural gas is one of the primary sources of energy in U.S. commercial buildings. Some consumers in the commercial sector also use natural gas as a fuel to generate electricity and in combined heat and power systems.
National natural gas prices are now 400% higher than they were in May 2020. The average cost of Since Dec 2023 alone, residential prices have jumped an average of 49%, and this upward trend shows no sign of slowing down.
Several factors contribute to these skyrocketing prices, including extreme weather events, increased demand, and geopolitical tensions. With various energy costs becoming a significant burden, it’s more crucial than ever to find effective solutions to reduce building energy consumption and enhance energy efficiency. Structural Insulated Panels (SIPs) offer a promising answer.
Colder Winters and Hotter Summers: Extreme weather conditions have led to increased energy usage for heating and cooling, pushing up demand for natural gas.
Pandemic-Related Labor Shortages: The COVID-19 pandemic disrupted natural gas production, reducing the supply just as demand began to rise again post-pandemic.
Geopolitical Conflicts: The political conflict in Europe, particularly involving Russia, has disrupted natural gas supplies. In response, the U.S. has increased liquified natural gas (LNG) exports to meet global demand.
General Energy Cost Increases: Prices for gasoline, coal, propane, and oil have also risen, contributing to the overall increase in energy costs.
Infrastructure Constraints: The Northeastern U.S. faces limitations in natural gas production due to full pipelines and regulatory delays for new projects.
While natural gas prices have been in flux for decades, and are projected to continue to rise for the foreseeable future, electricity prices have steadily declined (more than 50%) since 2010. Since December 2023, the price of electricity has decreased 31%. The pricing comes with supply and demand, where there is a greater supply of electricity available for building owners, partly due to the increased use of renewable energy sources generating electrical energy - both by utility sources and individual building owners.
To best plan for rising natural gas costs, choosing electric heating and cooling systems can reduce reliance on natural gas. This paired with an independent renewable energy source, such installing solar panels, allows you to generate your own electricity, reducing dependence on other external energy sources. An independent renewable energy source, paired with a highly efficient building system is the best case scenario for combating rising natural gas utility costs, and this is the trend of "net-zero energy" construction where a building generates enough energy for its own operation.
Net-Zero Construction is a great benefit in areas where electric bills aren't declining as fast as others. This utility bill difference may be attributed to huge regional utility investments to North America's aging energy infrastructure.
SIP - Environmental Center in Annapolis MD uses Solar Panels attached to SIP roof.
Integrating high-performance envelopes, with efficient building design (such as passive or net-zero energy strategies) are among the most effective ways to tackle energy challenges. Utilizing innovation solutions like Structural Insulated Panels (SIPs) can play a pivotal role in enhancing a building's energy efficiency, safety, strength, and comfort.
Structural Insulated Panels (SIPs) are the most energy-efficient, time-tested building envelope framing solution available. Most SIPs consist entirely of engineered products. Expanded polystyrene (EPS) [or higher R-value grey graphite polystyrene (GPS)] rigid insulation is sandwiched between two facings of structural grade-oriented strand boards (OSB). The OSB and rigid insulation is structurally adhered together using a structural adhesive. The result is an exceptionally strong engineered panel used for roof, walls, and floors to create a full building envelope system that creates superior insulating capabilities. Read more about the basics of SIPs here.
Enhanced Insulation: The U.S. Department of Energy highlights that air leaks can result in a 40% energy loss in heating and cooling a typical home. SIPs provide a continuous air barrier and superior insulation, significantly reducing energy wastage.
Improved Energy Efficiency: According to the Department of Energy’s Lawrence Berkeley National Laboratory (LBNL), energy-efficient buildings are essential for cutting energy costs and emissions. SIPs contribute to this by providing a tighter building envelope that reduces the energy required for heating and cooling.
Reduced Energy Bills: Optimizing the building envelope is key to a comfortable structure and lower energy bills. SIPs help achieve this by maintaining a consistent indoor temperature, thereby reducing the need for heating and cooling.
The Perfect Renewable Pair: In addition to using SIPs, building owners can further enhance energy efficiency by adopting renewable energy strategies with solar energy generation. Pairing solar and SIPs together helps building owners tackle rising natural gas costs. Additionally, lucrative tax incentives are available for both residential and commercial construction who choose energy efficient construction and renewable energy.
While discussions about energy production, pipelines, and grids are essential, it’s equally important to focus on reducing energy leakage and loss. This starts with the materials used in our buildings. SIPs are a crucial part of this broader energy conversation, offering a practical solution to rising energy costs.
With rising energy costs, it’s more important than ever to ensure your home and commercial buildings are is as energy-efficient as possible. Premier SIPS offer an effective solution to tackle these challenges, providing superior insulation, enhancing energy efficiency, and reducing energy bills. By incorporating SIPs into your building design, you can contribute to a more sustainable future while enjoying the benefits of a more comfortable and cost-effective home.
For more information on how Premier SIPs can help you save on energy costs and enhance your building's performance, contact your local Premier Rep today.