What’s Grade 1 Insulation & Why Does It Matter?

Matt, building performance expert, from southern energy management leading an on-site training at a new construction build about building performance

In This Article

Every home we inspect receives an insulation grade. While you’d expect Grade I to be standard, we often find Grade II or III in the field. Upgrading to Grade I is low-hanging fruit, one of the most cost-effective ways to boost your home’s performance.

When it comes to high performance homes, the quality of the insulation install makes a big difference. Grade 1 insulation (the highest standard) means a precise install with little room for error. To qualify as Grade 1, insulation can allow no more than 2% compression or voids. That small margin has a big impact on:

  • Home comfort – more consistent temperatures
  • Durability– avoiding hot & cold spots reduces risk of moisture issues
  • Efficiency and cost savings – lower utility cost & better thermal performance 
  • Rebates and certifications – required for ENERGY STAR homes and improves Duke Energy HERO Rebates 

Without Grade 1 insulation, builders risk losing out on incentives and homeowners lose out on comfort. Keep reading for our top 3 tips to help your homes achieve Grade 1 insulation.

Getting It Right in the Field

If you want to hit Grade 1, here are our top three things to look for:

Pro Tip #1: Split Fiberglass Batts Around Obstructions

Split batts around electrical wires, termite lines, and any other obstructions in walls for insulation to fully fill the cavities. Leaving voids here is the most common reason for a grade 2 or 3 result. 

Pro Tip #2: Fluff It, Don’t Stuff It

Avoid tucking, compressing, or stuffing insulation into corners or edges—this creates gaps that reduce performance. Fiberglass should be installed at its intended thickness to achieve its rated R-Value. 

Pro Tip #3: Cut Batts to Fit Cavities

Cut a separate (thin) piece to fit behind Cali Corners and Ladder T intersections. Stuffing & compressing a batt into these places compromises thermal performance. 

These simple practices can go a long way in ensuring your homes meet Grade 1 requirements.

Learn More

Check out our full Grade I insulation guide for photos and field examples.

Want to make sure your projects qualify for HERO rebates and ENERGY STAR every time? Connect with our team 

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