How Much Do SIPs Panels Cost? A Transparent Breakdown for Homeowners

Planning a new build or renovation and wondering what installing Structural Insulated Panels (SIPs) will mean for your budget? Good news! You’re asking exactly the right question. SIPs are gaining ground as an energy-efficient, high-performance building solution, but cost remains a key consideration.

To make sure the numbers are real and reliable, all cost estimates in this post are drawn from independent third-party construction estimation experts so you can trust you’re seeing genuine case study figures and direct comparisons.

SIPs vs Conventional Framing: Side-by-Side Costs

First, let’s look at base prices. For most Australian residential jobs, SIPs panels cost $200–$250 per square meter (materials only), whereas standard timber-framed walls run $100–$150 per square meter. Initially, SIPs come in higher, but that’s not the whole story.

Costing Comparison #1: Framing Materials & Labour

For just wall and roof framing (materials plus labour):

Category	SIPs Panels	140mm Stud Framing
Material Cost	$151,567	$76,614
Labour Cost	$37,400	$60,280
Total (Framing Only)	$188,967	$136,894

Timber costs less upfront, but SIPs cut onsite labour by around 40% thanks to quicker, simpler assembly—a hidden saving that makes the overall cost difference just 27.5%.

Costing Comparison #2: The Whole-House View

Building a 190 m², four-bedroom home. Here’s how the numbers shake out for the entire project including labour, permits, finishes, plumbing, and more:

Build Type	Total Construction Cost (incl. GST & Margin 25% Builders)
SIPs Build	$825,238.98
Timber Framing	$782,309.03
Difference	$42,929.95

This difference covers the entire build, not just the wall panels, and for SIPs, more costs are front-loaded into that initial price. Overall, SIPs come out just 5.2% more expensive than traditional timber framing.

Costing Comparison #3: Energy Savings Over Time

SIPs keep saving after the build thanks to exceptional insulation:

• Expect 30–50% lower heating and cooling bills, delivered by continuous high R-values of up to 9.35.

• Over seven years, an average Australian household might save $3,000–$5,000 or more, especially if energy prices rise.

• Timber frames (R2.5–R4) just don’t deliver the same thermal performance.

Why Do Costs Even Out?

So why would anyone pay more upfront for SIPs? Here’s the twist: they drastically reduce installation time and cut labour by 30–40%. Pre-insulated, pre-cut panels mean a build can finish 2–3 months sooner. With fewer trades, tighter schedules, and less management, savings show up fast.

Here’s how SIPs and timber framing compare at each step of the build, so you can see where time savings really add up.

Stage	SIPs Framing	Timber Framing
Design & Planning	1–2 weeks (detailed process)	1–2 weeks (more flexible)
Material Procurement	12–14 weeks (custom order needed)	1–2 weeks (stock readily available)
Foundation	2–4 weeks (same for both)	2–4 weeks (same for both)
Wall Framing	2–3 days (fast install)	1–2 weeks (labour intensive)
Insulation	0 days (already built-in)	2–3 days (added separately)
Air Barrier	0 days (already built-in)	2–3 weeks (added separately)
Services (rough-in)	1–2 weeks (no difference)	1–2 weeks (no difference)
Exterior Finishing	2–4 weeks (no difference)	2–4 weeks (no difference)

Other Perks of SIPs

SIPs provide more than just cost savings:

• Higher insulation means stable temperatures all year.

• Less “thermal bridging” mitigates condensation.

• Builds are stronger and quieter, with well-sealed walls and fewer drafts.

• Energy-saving homes may enjoy better resale value with eco-minded buyers.

Is SIPs Worth the Upfront Cost?

Most homeowners find that SIPs break even after about 7–10 years (often sooner if power prices spike). After that, it’s extra cash in the bank and a more comfortable, future-ready home.

The Takeaway

The initial investment is larger, but SIPs return the investment in energy savings, increased speed, and enhanced comfort for years to come. Before deciding, ask for a full, project-specific SIPs breakdown, the real numbers might pleasantly surprise you.

Thinking SIPs could be right for your home? Reach out for a tailored cost estimate and unlock a smoother, smarter, and more efficient build from budget to lifestyle.

For full transparency, all estimates and comparisons in this article were provided by an independent industry expert: Central Vic Estimating Services.