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ZIP.DOC Page 1
A Short Guide to ZIP, Version 1.0
November 1988
ZIP, the Zip Code Insulation Program, determines economic levels of
insulation for new and existing houses in any location in the United States,
given the first three digits of its Zip code. Economic insulation levels are
determined for attics, exterior walls, floors over unheated areas, slab
floors, and basement and crawlspace walls.
The economic levels computed by ZIP reflect the type of heating and cooling
systems specified by the user, as well as system energy efficiencies, local
energy prices, and current installed insulation costs. Local climate data for
the three-digit Zip code are retrieved from the ZIP disk. Default energy and
insulation price data are also retrieved from the ZIP disk. However, it is
recommended that users override these latter default values with estimates of
local energy and insulation prices, as requested during the analysis.
ZIP is a public domain computer program developed by the National Institute of
Standards and Technology (NIST, formerly the National Bureau of Standards)
under the sponsorship of the United States Department of Energy (DOE)*. As
ZIP is in the public domain, it may be copied and distributed freely. ZIP and
its supporting data files are provided on a single 5-1/4 inch floppy disk for
use with microcomputers having an MS-DOS operating system (typical IBM-
PC/XT/AT and compatible systems).
This "Short Guide" is a condensed version of the "User's Guide to ZIP 1.0, the
Zip Code Insulation Program," (ORNL/TM-11009 or NISTIR 88-3801). The printed
"User's Guide" provides comprehensive information about the ZIP program and
includes documentation of its computational algorithms. However, for most
users this "Short Guide" provides sufficient information to run ZIP
successfully. For information on how to obtain the more comprehensive ZIP
"User's Guide", write to
David McElroy
Oak Ridge National Laboratory
Bldg 4508, Mail Stop 6092
PO Box 2008
Oak Ridge, TN 37831-6092
The ZIP program was originally written to calculate economic levels of
insulation reported by 3-digit ZIP Code in the Department of Energy's
"Insulation Fact Sheet" (DOE/CE-0180, January 1987). The "Insulation Fact
Sheet" provides useful information related to the choice of insulation
materials for particular applications and suggestions related to its proper
installation. This program has now been enhanced and documented for more
general use, allowing users to obtain more detailed recommendations based on
local conditions. The "Insulation Fact Sheet" can also be obtained at the
address shown above.
----------
* Neither NIST nor DOE assumes any liability resulting from the use of the
information provided by the ZIP program or from any errors or omissions in the
program.
ZIP.DOC Page 2
The version of ZIP described here is intended for use by any government or
private agency (such as a utility) being asked to provide advice to consumers
on economic levels of insulation for new or existing houses. ZIP can also be
used by insulation manufacturers, insulation installers, and by homeowners
(either on their own personal computer or at some central location such as a
home show, utility office, or energy conference). Where local building codes
require more insulation than suggested by ZIP, the codes should take
precedence.
CALCULATION OF ECONOMIC LEVELS OF INSULATION
The economic levels of insulation calculated by ZIP are based on an
incremental type of analysis. Successive levels of insulation in each part of
the house are evaluated independently to determine how far it pays to keep
adding insulation and when to stop. For example, in an attic an economic
analysis is performed at R-0 (no insulation), R-11, R-19, R-22, R-30, R-38,
and R-49. As long as the additional insulation needed to increase the total
R-value from one level to the next is found to be cost effective, that
increment will be included in the recommended insulation level for that
application. If it is not cost effective, that increment will not be
included. In general, the more severe the climate, the higher the cost of
energy, and the lower the heating and cooling system efficiencies, the more it
pays to add insulation and the higher will be the economic level.
Economic calculations in ZIP are based on a reduction in long-term heating and
cooling costs. For new houses, a thirty-year life is used in calculating the
economic level of insulation. That is, the economic level of insulation
calculated for a new house will be the level which has the lowest present-
value insulation cost plus energy cost over a thirty-year period. For
existing houses, a twenty-year life is used in the calculations.
In performing these calculations, a seven percent annual rate of return, over
and above general inflation, is used to discount future savings to present
value. If inflation is currently five percent, this is approximately
equivalent to requiring a minimum twelve percent rate of return on the
investment. Each increment of insulation must earn at least this rate of
return to be considered cost effective. Residential energy savings are not
taxed, so that this is in effect an after-tax rate of return on investment.
Moreover, the first increments of added insulation typically return much
higher dividends than the last increment. Thus the average rate of return on
the entire investment tends to be considerably higher than the minimum
acceptable level, especially if there is little insulation to start with.
There are other benefits from installing economic levels of insulation in
houses. These include increased occupant comfort, reduced demand for scarce
energy resources, reduced peak energy demand, reduced pollution, and perhaps
even reductions in global warming. However, none of these benefits is
included explicitly in the ZIP analysis of insulation savings.
ZIP.DOC Page 3
RUNNING ZIP
To start ZIP, insert the disk into the default drive and enter 'ZIP'.
(Alternatively, the files on the ZIP disk can be copied to a hard disk and run
from that drive.) Enter the first three digits of the Zip code of interest as
requested, and ZIP will respond with the reference location and the
corresponding heating degree days (base 65F) and cooling degree hours (base
74F). The reference location is typically the location designated by the U.S.
Postal Service as the main post office at the three-digit Zip code level. If
the location is acceptable, press <Enter>; otherwise enter another Zip code.
ZIP then asks the user to designate whether the analysis is for a new or
existing house, the type and approximate efficiency of the heating and cooling
systems, and the presence of ductwork in unconditioned spaces.
Five different heating systems can be selected in ZIP: three furnaces types,
including natural gas, fuel oil, and electric resistance; electric baseboard;
and electric heat pump. Two electric cooling systems can be selected: central
and window air conditioners. (An evaporative cooling system can also be
selected. However, no cooling savings from insulation are calculated for this
latter system.) In addition, the user can specify the approximate operating
efficiency of the heating and cooling systems (low, medium, high, or very
high). System specifications are needed to calculate the purchased energy
savings corresponding to any given reduction in space heating and cooling
loads. If there is ductwork in attics, crawlspaces, or other unconditioned
spaces, an adjustment is also made to the equipment efficiency to reflect duct
losses.
Current energy prices for heating and cooling, corresponding to the type of
systems selected, are then requested. Default values based on the DOE
regional energy price data base are displayed. These values can be used but
it is recommended that the user replace these with local energy prices in the
units shown (e.g., kWh, therms, gallons). These prices should include all
taxes and fuel adjustment costs (but not demand charges, if any*). If
declining (or increasing) block rates are applicable (for example, kWh prices
are often lower for kWh usage above 500 kWh per month than for the first 500
kWh), the energy cost should reflect the cost of the last units purchased each
month (during the months of major usage), not the average cost for all units.
If there are different prices for summer and winter usage (as is often the
case for electricity), the price used for cooling should be based on the
summer rate and the price for heating on the winter rate.
Screen 1.1 shows the menu for selecting the insulation applications of
interest to the user. Mark an 'X' in the box corresponding to each of the
choices desired. Only data pertinent to the applications marked with an X
will be requested after this point.
--------
* ZIP does not evaluate benefits for reductions in the maximum rate of energy
use in specific time periods. However, demand charges, which are needed to
evaluate such benefits, are not typically included in residential rate
schedules and thus this analysis is not applicable to most houses.
ZIP.DOC Page 4
Screen 1.1 Menu for marking insulation systems of interest
╔════════════════════════════════════════════════════════════════════════════╗
║ MARK INSULATION SYSTEMS OF INTEREST WITH AN X ║
║ (Use cursor to move up and down, <Del> to erase X) ║
║ ║
║ ATTIC [X] ║
║ EXTERIOR WALLS: ║
║ Wood Frame [X] ║
║ Concrete-masonry [X] ║
║ FLOORS/CRAWLSPACES: ║
║ Floors over unheated/uninsulated spaces [X] ║
║ Slab floors [X] ║
║ Crawlspace walls [X] ║
║ BASEMENT WALLS - DEEP: ║
║ Exterior Insulation [X] ║
║ Interior Insulation [X] ║
║ BASEMENT WALLS - SHALLOW: ║
║ Exterior Insulation [X] ║
║ Interior Insulation [X] ║
║ ║
║ Press <End> When finished. ║
╚════════════════════════════════════════════════════════════════════════════╝
If insulation in an existing house is being evaluated, the user is asked to
identify the approximate levels of insulation in the attic, wood-frame walls,
floors over unheated areas, and crawlspace walls, if any. The approximate
level is selected from a menu of choices by code number, not by the actual
R-value.
Default insulation costs for each application checked are then displayed.
For most applications, three to eight different insulation levels are shown
along with default estimates of their installed cost. ZIP will evaluate each
of these levels to determine which is the most cost effective in this
analysis, using the costs shown. The user should change these default
insulation costs to reflect the current cost of insulation for the application
of interest. The guidelines in table 1 should be considered in determining
appropriate insulation costs.
The insulation levels and corresponding costs in the insulation data file used
by the ZIP program are the same for both new and existing houses, with the
exception of the insulation for exterior wood-frame walls. In new houses, it
is much less costly to insulate a wall before the inside surface is finished
than it is to blow insulation into an existing wall cavity. Moreover, for a
house under construction, thicker walls or insulated sheathing can be used to
improve the its overall insulation effect, while in a completed house, the
addition of insulation is generally limited to the available cavity in the
existing wall.
ZIP.DOC Page 5
Table 1. Important considerations in specifying insulation costs
o All costs are to be specified in terms of insulation resistance (R)
value, not thickness.
o All costs are shown as cost per square foot or cost per linear foot for
the indicated R-value. If you get cost estimates for the total job,
you must convert them to dollars per square foot or per linear foot
as indicated.
o The insulation costs should include both material and labor costs if
professionally installed.
o If you are doing the job yourself, you can omit labor costs, or include
the cost of your time, as you prefer.
o All insulation costs should include the cost of structural
modifications or coverings if these additional costs cannot be
justified for other purposes.
o Each R-value for any given application is expected to cost more than
the previous R-value, never the same or less.
o Technically speaking, it is the difference in cost for each additional
R-value relative to the previous R-value that is most important in
the analysis. Therefore take care to make the cost differentials
reasonable.
ZIP REPORT FORMAT
The results of the economic analysis for the designated location are displayed
on the screen, as shown in screen 1.2 for a new house in ZIP Code 809XX
(Colorado Springs). The reference location is typically the location
designated by the U.S. Postal Service as the main post office for the three-
digit ZIP Code. The number of annual heating degree days (base 65F) and
cooling degree hours over 74F are shown for the designated location, along
with the heating and cooling systems used in the analysis.
Screen 1.2 shows the screen display of economic levels for all of the
components that can be evaluated by ZIP. However, economic levels are
displayed only for those components selected for analysis by the user for the
particular application. Screen 1.3 shows additional information for floors
over crawlspaces and crawlspace walls that can be displayed by pressing
<PgDn>. To return to the ZIP analysis screen, press <PgUp>.
Energy savings and their estimated dollar value computed in the analyses are
not shown on the screen display. These calculations are based on uniform
surface areas for a typical house under average operating conditions for a
typical year. They would not provide any meaningful estimate of savings for
the user's house.
Note that the economic levels of insulation both under floors over crawlspace
and on crawlspace walls are shown. However, only one of these would be used
in most houses. For crawlspaces that do not need ventilation and can be
closed off, it is usually more economical to insulate the walls than the floor
if the wall area is less than the floor area. If the crawlspace cannot be
safely closed off, the floor above should be insulated instead. In this
latter case, care must be taken to insulate water pipes and any ductwork in
the unheated area. ZIP.DOC Page 6
Screen 1.2. Display of ZIP Analysis for New House
╔════════════════════════════════════════════════════════════════════════════╗
║ Economic Insulation Levels for Zip 809XX ║
║ Reference Location: Colorado Springs, CO ║
║ Heating system: HEAT PUMP Cooling system: HEAT PUMP ║
║ -------------------------------------------------------------------------- ║
║ New House Construction ║
║ ║
║ Attic Insulation R-38 ║
║ Wood-Frame Wall Insulation R-19 ║
║ Masonry Wall Insulation R-11 ║
║ Floors over Crawlspace ║
║ (If crawlspace walls are uninsulated) R-30 ║
║ Crawlspace Wall Insulation ║
║ (If floor above is uninsulated) R-19 ║
║ Slab-Edge Insulation R- 4 ║
║ Insulation of Basement Walls: ║
║ Exterior Insulation for Deep Basement R- 8 ║
║ Interior Insulation for Deep Basement R-11 ║
║ Exterior Insulation for Shallow Basement R- 8 ║
║ Interior Insulation for Shallow Basement R-11 ║
║ ║
║ -------------------------------------------------------------------------- ║
║ Press <PgDn> for additional information. ║
║ Press <SHIFT> <PrtSc> to print this screen if desired. ║
║ Press <ESC> to exit, R to do another analysis: ║
╚════════════════════════════════════════════════════════════════════════════╝
Screen 1.3
╔════════════════════════════════════════════════════════════════════════════╗
║ Additional information ║
║ ║
║ Insulate either the floor over the crawlspace or the crawlspace ║
║ walls, not both. Consult an insulation specialist to determine ║
║ which is more appropriate for your house. ║
║ ║
║ Crawlspace walls should only be insulated if the crawlspace is ║
║ closed off, unventilated, and dry all year. The ground should ║
║ be covered with a vapor barrier (e.g., 4- or 6-mil polyethylene ║
║ sheeting) to minimize moisture migration into the crawlspace. ║
║ Note: some building codes may not allow unventilated crawlspaces. ║
║ If radon gas is a problem at the building site, closing off the ║
║ crawlspace may not be advisable. ║
║ ║
║ When insulating floors over crawlspaces or other unheated areas, ║
║ make sure that water pipes are freeze-protected and ductwork is ║
║ well insulated in those areas. ║
║ ║
║ -------------------------------------------------------------------------- ║
║ Press <SHIFT> <PrtSc> to print this screen if desired. ║
║ Press <PgUp> to show economic insulation levels: ║
║ ║
╚════════════════════════════════════════════════════════════════════════════╝ZIP.DOC Page 7
The following files can be found on the original ZIP disk:
ZIP.EXE The executable version of ZIP.
CLIMATE.DAT A file of climate data, keyed to three-digit ZIP Codes.
INSCOST.NEW A file of default insulation price data for new houses.
INSCOST.RET A file of default insulation price data for existing
houses.
ZIP.BAS The source code version of ZIP.
ZIP.DOC A short explanation of the ZIP program.
Files of default energy price projections for DOE regions 1 through 10:*
ENPRICES.1 ENPRICES.4 ENPRICES.7
ENPRICES.2 ENPRICES.5 ENPRICES.8
ENPRICES.3 ENPRICES.6 ENPRICES.9
ENPRICES.10
All of these files (except ZIP.BAS and ZIP.DOC) are needed to run ZIP. Copy
these files to a new disk for running the program, and store the original disk
in a safe place. There is no disk operating system (DOS) on the original ZIP
disk. Thus you should copy the files on this disk to a disk which has been
formatted with DOS or to your fixed (hard) disk. If you are copying these
files to a fixed disk, you might want to copy them to a subdirectory named
ZIP.
Note (2-1-90): ZIP 2.0 is currently in the testing stage and is expected to
be released in the spring of 1990. ZIP 2.0 will allow the user to evaluate
economic levels of insulation for ducts in unconditioned spaces and for
cathedral ceilings. It will also determine whether or not a water heater
insulation jacket is cost effective based on the water heater type and
remaining life. ZIP 2.0 will have other enhancements to make the program
easier to use. For information on the availability of ZIP 2.0 contact:
Applied Economics Group
National Institute of Standards and Technology
Bldg 101, Rm A415
Gaithersburg, MD 20899
(301) 975-6131
-----------
* DOE regions are as follows:
1 ME, NH, VT, MA, CT, RI 6 TX, NM, OK, AR, LA
2 NY, NJ, 7 KA, MO, IA, NE
3 PA, MD, WV, VA, DC, DE 8 MT, ND, SD, WY, UT, CO
4 KY, TN, NC, SC, MS, AL, GA, FL 9 CA, NV, AZ, HI
5 MN, WI, MI, IL, IN, OH 10 WA, OR, ID, AK
ZIP.DOC Page 8
A technical note on the default energy and insulation prices
accessed by ZIP from the ENPRICES and INSCOST files
All prices, as displayed on the screen, are currently expressed in 1988
dollars. They are automatically converted to 1988 dollars from 1985 dollars
(as they are stored on the disk) using a 12 percent cumulative inflation
factor (i.e., a GNP deflator of 1.12) over the three year period. If you
intend to change the default prices in the data files you must be careful to
specify the proper inflation factor (i.e., GNP deflator) in these data files.
If, for example, you change these price data in the files to 1989 dollars for
use in 1989, then the GNP deflator should be set to 1.0 (i.e., zero cumulative
inflation). If you wish to retain the price data currently in the files but
want to convert it to a later year (e.g., 1989) in the screen display, you
must change the GNP deflator in the files to reflect the cumulative inflation
from 1985 to date. These changes can be made with a simple text editor,
saving the file in the text (ASCII) mode when finished. See the ZIP User's
Guide, pages 26 and 27, for the format of the insulation price files. Pages
24, 25 and 29 show the format for the energy price files.
Note that the energy price projections in the ENPRICES files must be stated in
constant dollars, i.e., net of general price inflation. The year in the
second line (1985 in the current file) designates the first year for which a
price is given. The integer on the third line (26 in the current file)
designates the number of years for which prices are contained in the file.
The current year for screen display is determined from the clock in your
computer; therefore it must be set to the proper year. The current price for
screen display is based on the price for the current calender year, multiplied
by the GNP deflator in the file. The energy prices for future years contained
in the ENPRICES file are used to determine the rate of energy price increase
from year to year (net of general inflation), regardless of whether you use
the default prices or enter your own price. That is, if the 1988 price for
natural gas is 7.02 and the 1989 price is 7.47, then the implicit assumption
is that natural gas prices will rise at a rate 6.4% greater than prices in
general for that year. If the number of prices in the price file is less than
the period of analysis (20 years for existing houses, 30 years for new
houses), a zero energy price increase is assumed for those years in which no
energy prices are available.