How does good insulation affect energy bills?

Good insulation significantly reduces energy costs by minimizing heat loss in winter and heat entry in summer within a building. When a home is well-insulated, it retains the warm air generated by heating systems during colder months and keeps hot air outside during warmer months. This efficiency means that heating and cooling systems do not have to work as hard or run as long to maintain a comfortable temperature. Consequently, less energy is consumed, leading to lower energy bills.

In contrast, poor insulation can lead to higher energy consumption because heating or cooling systems must continuously operate to compensate for the energy lost through walls, roofs, or windows. Therefore, the correct answer highlights the direct relationship between good insulation and reduced energy costs.