The Ultimate Guide to Insulation for Businesses: Everything You Need to Know

Running a business means you’re always on the lookout for ways to save money and make your premises more efficient. Insulation might not seem like the most exciting topic, but for SME owners, it’s one of the smartest investments you can make.

Whether you’re looking to reduce your business energy costs, improve the comfort in your office, or boost your building’s energy efficiency, proper insulation is a real game-changer.

Five-point summary of our business insulation guide

1. Business insulation can reduce heating and cooling costs by up to 40% while improving comfort, EPC ratings, and environmental sustainability for UK SMEs.
2. Five main insulation types suit different commercial premises: spray foam (open and closed cell), fibreglass, mineral wool, foam board, and reflective barriers.
3. Average costs range from £500 for loft insulation to £13,000 for external solid wall insulation, with government grants available through schemes like the Clean Heat Grant.
4. All UK commercial properties must meet minimum EPC standards, making insulation a legal requirement for properties rated below E.
5. Professional installation is recommended for complex systems, though DIY fibreglass installation is possible for smaller, straightforward projects.

What is insulation?

Insulation is a material placed inside walls, roofs, floors, and windows to stop heat from escaping or entering your business premises.

The more effectively your business is insulated, the less energy you’ll need to keep it at a comfortable temperature, which can help lower your energy bills and your business's carbon footprint.

Insulation works by creating a thermal barrier that slows the transfer of heat between the inside and outside of your building. Materials are rated by their R-value. The higher the R-value, the better the insulation's thermal resistance and performance.

The type of insulation you choose depends on the layout of your building and what you’re hoping to achieve — whether that’s saving energy, reducing noise, or both!

What does insulation do?

Insulation isn’t just about keeping the heat in; it has a whole lot more benefits that make it an absolute must for any business.

• Retain heat - First things first, insulation is mainly used to retain heat. During the colder months, insulation prevents heat from escaping through walls, floors, and ceilings. This means you can keep your premises warm without having to crank up the heating, which saves you money and reduces your overall energy consumption.
• Reduces energy loss - Heat naturally wants to escape from your building, and without insulation, this happens through cracks, gaps, and poorly sealed areas. Insulation fills in those gaps, so your heating or cooling systems don’t have to work as hard. By preventing thermal bridging - where heat escapes through building materials - insulation ensures consistent temperature control throughout your premises.
• Improves temperature regulation - Insulation helps maintain a stable temperature inside your building, making it cooler in the summer and warmer in the winter. A steady indoor temperature not only makes your workspace more comfortable but also means you won’t have to rely as heavily on air conditioning or heating, saving money in the process.
• Provides acoustic benefits - As well as controlling temperature, quality insulation can also reduce noise pollution. For businesses in busy locations, open-plan offices, or industrial settings, sound insulation can improve productivity, reduce workplace stress, and create a more professional environment for staff and customers.

Why does my business need insulation?

If you're wondering, is insulation really necessary for my business? The answer will probably be yes.

• Cost savings -With proper insulation, your heating and cooling systems don’t have to run as often, which cuts your energy usage. And with energy costs on the rise, this can mean savings on your monthly utility bills. Research shows well-insulated buildings can reduce heating and cooling costs by up to 40%, delivering significant annual savings.
• Energy efficiency - By using less energy to keep your space comfortable, you’re improving your business’s overall energy efficiency. Not only does that save money, but it also helps your business become more environmentally friendly — a win-win! Lower energy consumption also reduces your carbon footprint, helping you meet sustainability targets and appeal to eco-conscious customers and investors.
• Comfort - Insulation creates a more comfortable environment for both your employees and customers. You won’t have to worry about cold draughts in the winter or stuffy heat in the summer. Instead, your business will feel just right, no matter the season. Comfortable working conditions have been shown to boost employee morale, productivity, and retention rates. With the UK government committed to achieving net zero by 2050, businesses with strong energy efficiency measures will be better positioned to comply with evolving environmental legislation.
• Future-proofing - As energy prices continue to climb, insulating your business is one of the most effective ways to safeguard your bottom line. Plus, it’s a smart way to prepare for any future regulations around energy use and sustainability.
• Improved property value - Well-insulated commercial properties typically achieve higher EPC ratings, which can increase property valuations, make premises more attractive to tenants or buyers, and potentially reduce insurance premiums by minimising risks associated with damp and structural damage.

What insulation types are suitable for businesses?

When it comes to the right type of insulation, there’s a wide range of options to choose from depending on the business you run and the size of your premises. Understanding the differences between insulation types helps you select the most cost-effective solution for your specific building and budget.

Spray foam insulation

This is one of the most popular choices for businesses because it’s quick to install and incredibly effective.

Spray foam expands when applied, filling all the nooks and crannies and creating a solid barrier that stops heat from escaping. It’s perfect for more hard-to-reach areas, like wall cavities and attics.

There are two main types of spray foam insulation:

• Open-cell spray foam - This version is lighter, more flexible, and excellent for sound insulation. It expands significantly upon application, filling gaps and cracks effectively, making it ideal for irregularly shaped spaces. Open-cell foam is typically more affordable and perfect for internal wall insulation and acoustic control in offices, meeting rooms, or retail spaces.
• Closed-cell spray foam - This denser option offers superior thermal insulation and moisture resistance, with higher R-values per inch than open-cell. Closed-cell foam adds structural rigidity to walls and roofs, making it suitable for external applications, cold stores, warehouses, and areas prone to dampness. Studies show closed-cell spray foam can deliver energy savings of up to 50% compared to non-insulated buildings.

Fibreglass insulation

This is the most cost-effective and widely used option, especially for wall cavities, floors and ceilings.

Fibreglass is made up of tiny glass fibres and provides excellent thermal performance, keeping your building warm in the winter and cool in the summer. Fibreglass batts are easy to handle, non-flammable, and available in various thicknesses and R-values, making them suitable for most standard commercial applications.

Mineral wool insulation

Often used in commercial buildings for both heat and sound insulation, mineral wool is fire-resistant, making it an excellent option for more industrial spaces. Mineral wool (also known as rock wool or stone wool) offers exceptional fire safety—it can withstand temperatures above 1000°C without melting—and is particularly suited to factories, kitchens, server rooms, and buildings requiring enhanced fire protection

Foam board insulation

Ideal for flat roofs or walls, foam board is lightweight and easy to install. It offers high thermal resistance and is perfect for larger buildings, warehouses, and other commercial properties that need high-performance insulation.

Foam boards, including polyisocyanurate (PIR) and extruded polystyrene (XPS), provide excellent insulation in thinner profiles, making them ideal where space is limited or where high R-values are required without adding bulk.

Reflective or radiant barrier insulation

This type of insulation is usually used in buildings with attics or roofs that heat up quickly, like warehouses or factories.

It works by reflecting heat away from the building, keeping the interior cooler and reducing air conditioning costs. Reflective insulation is particularly effective in buildings with metal roofs or in areas exposed to intense sunlight, helping to cut summer cooling costs significantly.

How to get insulation installed for your business

Getting insulation installed for your business is easier than you might think.

Start by getting in touch with a professional insulation provider who can assess your premises and recommend the right type of insulation for your needs. Most companies will provide a free quote and guide you through the installation process, but it’s best to double-check before you get in touch.

Before installation begins, consider conducting a professional energy audit to identify the areas where your business is losing the most heat. Many local councils and energy suppliers offer free or subsidised energy audits that can pinpoint exactly where insulation will deliver the greatest return on investment.

Professional installation is usually the best option because it means your insulation is fitted correctly. Qualified installers ensure compliance with Building Regulations, avoid common mistakes, like compressing insulation (which reduces effectiveness), and can often complete the work outside business hours to minimise disruption.

Can you install insulation yourself?

If you’re handy with DIY, you may be able to install some types of insulation, like fibreglass, yourself.

However, more complex systems like spray foam should always be left to professionals. They can make sure everything is properly sealed and that the insulation is applied where it’s most needed, meaning you’ll get the best results.

And be aware that DIY installation also carries risks. Improper handling of fibreglass can cause skin irritation, and mistakes with vapour barriers can lead to condensation and mould growth, potentially costing more to fix than professional installation would have cost initially.

Do all businesses need insulation?

Yes, all businesses should have some form of insulation, regardless of the type of building or industry.

Whether you’re running an office, a bustling coffee shop on a high street, or moving stock in a warehouse, insulation helps save on energy bills and keeps temperatures just right.

It’s a simple way to reduce overhead costs and make your business more sustainable. Even businesses in relatively mild climates benefit from insulation—it's not just about winter heating, but also about keeping premises cool in summer, protecting against condensation, and meeting legal EPC requirements

How to maintain your business insulation

Keeping your insulation in good shape means it continues to save energy and money for years to come. While it doesn’t need much attention once installed, a few simple checks every now and then can help spot any issues early and prevent costly problems down the road.

• Low upkeep - Once installed properly, insulation usually doesn’t require much maintenance, meaning you can focus on running your business without extra hassle.
• Scheduled inspections - Aim to check your insulation every 2-3 years to make sure it’s still in good condition and performing well. Schedule inspections alongside routine building maintenance, EPC renewals, or energy audits for maximum efficiency.
• Key spots to check - Pay extra attention to areas prone to wear or damage, like attics, basements, around windows and doors, or any places where moisture might get in. Also check for pest damage, particularly in attics and crawl spaces, as rodents can compress or damage insulation materials.
• Signs of trouble - Look for gaps, cracks, compressed sections, or damp and mouldy patches, as these can reduce the insulation’s effectiveness and lead to higher energy bills. Other warning signs include cold spots, condensation on windows, ice dams on roofs in winter, or unexplained increases in heating costs.
• Prompt repairs - If you find any damage or wear, arrange repairs as soon as possible to keep your premises comfortable and efficient. Most insulation repairs are relatively inexpensive when caught early, but delaying can lead to structural damage, mould growth, or significantly higher energy bills.

How much does insulation for business premises cost?

The cost of insulation will vary depending on the size of the property you're insulating and the type of insulation you're fitting (for instance, loft insulation is generally cheaper than solid wall insulation). To give you an idea of how much you could pay, here are some estimates from The Renewable Energy Hub website:

• Loft insulation - £500 for an average-sized loft space
• Floor insulation - £1,000 for a house-sized floor space
• Cavity wall insulation - between £500 and £3,000
• Solid wall insulation - internal wall insulation is about £5,000. External wall insulation is between £9,000 and £13,000

While these upfront costs may seem significant, most businesses see a payback period of three to seven years through reduced energy bills, after which the savings represent pure profit. For high-energy-use businesses like restaurants, gyms, or cold storage facilities, payback periods can be even shorter.

Are business grants available for insulation?

If you need to insulate your premises, it's worth checking to see if you're eligible for any business grants. The Ofgem website has a good breakdown of what's on offer. Key government schemes for 2025/26 include:

• The Clean Heat Grant - This scheme provides financial support to help businesses switch from fossil fuel heating to low-carbon alternatives like commercial heat pumps, with grants available of up to £7,500 for air source heat pumps and up to £15,000 for ground source heat pumps. Find out more at the UK government website.
• Smart Export Guarantee (SEG) - Businesses generating their own renewable energy through solar panels or wind turbines can get paid for exporting surplus electricity back to the National Grid, creating an additional income stream alongside energy savings. Find out more in our guide to selling energy back to the grid.
• Green Gas Support Scheme - This offers funding for businesses producing biomethane, with tariff payments guaranteed for 15 years, making it particularly attractive for agricultural businesses and food processors. Apply at the UK government website.

Does having insulation reduce your business energy bills?

Insulation can help to cut your business energy bills by minimising heat loss and reducing the amount of energy needed to keep your premises at a comfortable temperature. Insulation helps keep heat in during colder months and cool air in during warmer months, reducing the need for constant heating or cooling. 

The amount you save will depend upon your premises and the size of your business energy bills, but research from the Federation of Small Businesses suggests that "a well-insulated building can help to cut the cost of heating and cooling by up to 40%, whilst also reducing your carbon dioxide".

Below are some examples of how fitting installation could benefit your business. Costs and savings will vary according to your region, building type and efficiency, energy supplier, type of contract, and how and when you use energy.

• A 200m² office in Manchester - Could save approximately £800 to £1,200 annually on heating bills with comprehensive insulation upgrades.
• A 500m² warehouse in Birmingham - Could reduce winter heating costs by £2,000 to £3,500 per year with proper roof and wall insulation.
• A high street retail unit - May see combined heating and cooling savings of 30 to 35%, particularly beneficial for shops with large glass frontages.

Combining insulation with other energy efficiency measures—such as LED lighting, smart thermostats, zone-based heating controls, and energy management software—can amplify savings even further, with some businesses achieving total energy cost reductions of 50-60%.

Can insulating your business premises impact your insurance?

Did you know that properly insulated buildings might even help lower your business insurance premiums?

Insulation reduces the risk of issues like damp, mould, and condensation, which can lead to damage over time. This can make your building less risky for insurers, potentially leading to lower premiums. 

It’s worth checking with your insurance provider to see if insulation can help cut your costs.

Is insulation a legal requirement for businesses in the UK?

Yes, as part of the two regulations below: 

1. Part L of the UK Building Regulations sets thermal performance standards (U-values) for all new builds and major renovations
2. Minimum Energy Efficiency Standards (MEES), which requires all rented commercial properties to achieve at least an EPC rating of E or face letting restrictions and potential fines of up to £150,000

In the UK, all commercial properties must meet certain energy efficiency standards, and this is where your Energy Performance Certificate (EPC) comes into play.

If your property has a low EPC rating (below an E), insulation could be one of the easiest ways to boost that score.

How long does business insulation last?

Insulation is built to last, and in most cases, it can last for several decades without needing to be replaced.

However, the effectiveness of your insulation can be impacted by a whole range of factors like moisture, pests, or physical damage, so it’s a good idea to check your insulation every 2-3 years to make sure it’s still performing to a high standard.

Save on your energy bills with Bionic

Insulating your business is one of the smartest ways to save money, improve your EPC rating, and make your operations more energy efficient. Whether you choose spray foam insulation, fibreglass, or any other type, the benefits are clear.

Ready to start making your business more energy-efficient? Take a look at our business energy page to learn more, or head over to our energy guides to find everything from eco-friendly energy-saving solutions to information on the price cap and more.

Building insulation for UK businesses FAQs  

Here’s an at-a-glance guide to some of the most frequently asked questions about building insulation for UK businesses: 

What is the best type of insulation for UK business premises?

Closed-cell spray foam insulation is considered the most effective option for UK commercial buildings, offering the highest R-value per inch, superior moisture resistance, and potential energy savings of up to 50% compared to uninsulated premises.

How much can UK businesses save on energy bills with proper insulation?

UK businesses can reduce heating and cooling costs by up to 40% with comprehensive insulation, with typical SMEs saving between £800 and £3,500 annually depending on premises size and current energy usage.

Is business insulation a legal requirement in the UK?

Yes, all UK commercial properties must meet minimum Energy Performance Certificate (EPC) standards, and properties rated below E are legally required to improve insulation and energy efficiency or face potential fines and operational restrictions.

How long does commercial insulation last before needing replacement?

Most business insulation lasts 25-40 years without replacement when properly installed and maintained, though inspections every 2-3 years are recommended to check for compression, moisture damage, or pest interference.

Can small businesses get grants for insulation in 2026?

Yes, UK small businesses can access government funding including the Clean Heat Grant (up to £15,000), Smart Export Guarantee payments, and the Green Gas Support Scheme, with full details available through Ofgem and local council energy efficiency programmes.

Does insulation reduce business insurance premiums?

Properly installed fire-resistant and moisture-controlling insulation can reduce business insurance premiums by lowering risks associated with fire spread, damp damage, and mould growth, though premium reductions vary by insurer and property type.

What is the average payback period for business insulation investment?

Most UK businesses see a full return on insulation investment within 3-7 years through reduced energy bills, with high-energy-use sectors like hospitality, cold storage, and manufacturing achieving payback in as little as 2-4 years.

Can existing business premises be insulated without major disruption?

Yes, modern insulation techniques, including spray foam and cavity wall insulation, can typically be installed outside business hours with minimal disruption. It takes one to three days for most SME premises, depending on size and insulation type chosen.