North Star Group, Inc.

19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Cost Analysis: MgO Board SIP Panels for

Modern Eﬃciency Units

Executive Summary

This white paper examines the current market pricing and value proposition of Magnesium Oxide

(MgO) board Structural Insulated Panels (SIPs) in the United States, with speciﬁc application to

small residential eﬃciency units. The analysis includes cost breakdowns, material comparisons

between both traditional OSB-faced and premium MgO-faced panels, and a speciﬁc case study

of a 650 square foot one-bedroom eﬃciency unit.

Introduction

Structural Insulated Panels (SIPs) have gained popularity in the US construction market due to

their superior energy eﬃciency, rapid assembly time, and structural integrity. SIPs are available

with various facing materials, with Oriented Strand Board (OSB) being the most common and

Magnesium Oxide (MgO) board representing a premium alternative. This analysis examines both

types, with emphasis on the advantages and cost implications of MgO board panels, which oﬀer

additional beneﬁts including ﬁre resistance, moisture resistance, and improved indoor air quality.

Market Overview

The structural insulated panels market is projected to reach USD 517 million by 2025, driven by

increasing demand for energy-eﬃcient construction solutions and supportive governmental

policies promoting green building practices. While OSB-faced panels dominate the current

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market, MgO board facings represent a growing premium segment, commanding higher prices

due to their enhanced performance characteristics.

Cost Structure Analysis

Basic Material Costs

The current US market pricing for SIP panels varies by facing material:

OSB-Faced SIP Panels:

● Low range: $7-$9 per square foot for standard panels

● Mid range: $10-$14 per square foot for enhanced panels

● High range: $15-$18 per square foot for premium speciﬁcations

MgO-Faced SIP Panels:

● Low range: $10-$15 per square foot for standard panels

● Mid range: $16-$20 per square foot for enhanced panels

● High range: $20-$30 per square foot for premium speciﬁcations

Floor Panel Considerations

SIP ﬂoor panels typically require additional structural considerations compared to wall or roof

panels:

● Higher load-bearing requirements

● Thicker panels for ﬂoor applications (often 8-12")

● Enhanced moisture resistance for ground-level applications

● Special edge treatments for ﬂoor-to-wall connections

Floor panels may add 10-15% to the per-square-foot cost for both OSB and MgO options

compared to wall panels of similar R-value, due to these enhanced requirements.

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

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A comprehensive MgO SIP panel building system includes:

● MgO board-faced SIP panels

● Required fasteners and sealants

● Splines for panel connections

● Pre-cut openings for doors and windows

● Electrical chases and box cutouts

● Specialized headers and framing elements

When these elements are included, the average cost increases by $6-10 per square foot over

basic panel pricing.

Case Study: 650 SF One-Bedroom Eﬃciency Unit

For a 650 square foot one-bedroom eﬃciency unit similar to the Eﬃciency Model but with

expanded square footage, we can develop comparative cost estimates for both OSB and MgO

SIP panel construction:

Project Speciﬁcations:

● Total exterior wall area: 840 square feet (based on 12' height and perimeter)

● Roof panel area: 650 square feet

● Floor panel area: 650 square feet

● Few interior partitions: approximately 340 square feet

● Total SIP panel required: 2,480 square feet

OSB SIP Panel Cost Estimate:

Basic OSB SIP Panels Only:

● Low range: $17,360 ($7/sq ft)

● Mid range: $22,320 ($9/sq ft)

● High range: $29,760 ($12/sq ft)

Complete OSB SIP Kit with Pre-cuts:

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

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● Low range: $24,800 ($10/sq ft)

● Mid range: $34,720 ($14/sq ft)

● High range: $44,640 ($18/sq ft)

MgO SIP Panel Cost Estimate:

Basic MgO SIP Panels Only:

● Low range: $24,800 ($10/sq ft)

● Mid range: $31,000 ($12.50/sq ft)

● High range: $37,200 ($15/sq ft)

Complete MgO SIP Kit with Pre-cuts:

● Low range: $31,000 ($12.50/sq ft)

● Mid range: $40,300 ($16.25/sq ft)

● High range: $49,600 ($20/sq ft)

Premium MgO Package with Enhanced Features:

● Low range: $49,600 ($20/sq ft)

● Mid range: $62,000 ($25/sq ft)

● High range: $74,400 ($30/sq ft)

Installation Costs:

Installation costs are similar for both panel types, adding approximately $8-12 per square foot,

including labor and equipment. For this eﬃciency unit, installation costs would range from

$19,840 to $29,760.

Total Project Cost Comparison (Materials + Installation):

OSB SIP Panels:

● Basic package: $37,200 - $59,520

● Complete kit: $44,640 - $74,400

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

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MgO SIP Panels:

● Basic package: $44,640 - $66,960

● Complete kit: $50,840 - $79,360

● Premium package: $69,440 - $104,160

Comparative Analysis: OSB vs. MgO SIP Panels

OSB-Faced SIP Panels

OSB (Oriented Strand Board) faced SIP panels represent the traditional and most common form

of structural insulated panels in the US market. These panels use OSB sheets on both sides of an

insulating foam core, typically expanded polystyrene (EPS) or polyisocyanurate.

Cost Structure for OSB SIP Panels:

● Basic Material Costs: $7-$12 per square foot for standard panels

● Higher Performance Panels: $10-$18 per square foot for thicker panels with higher

R-values

● Premium Customized Panels: Up to $20 per square foot for pre-cut, factory-ﬁnished

panels

Advantages of OSB SIP Panels:

● Lower initial cost compared to MgO panels

● Widely available with many manufacturers

● Established track record in the construction industry

● Familiar to more contractors and installers

Limitations of OSB SIP Panels:

● Susceptible to moisture damage if not properly protected

● Contains formaldehyde-based adhesives that may oﬀ-gas

● Less ﬁre-resistant than MgO alternatives

● Requires careful sealing against moisture intrusion

________________________________________________

19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Solar Panel Services

______________________________________________

MgO-Faced SIP Panels

MgO (Magnesium Oxide) board SIP panels represent a premium alternative to traditional

OSB-faced panels, oﬀering several performance advantages that justify their higher cost for

certain applications.

MgO SIP Panel Advantages:

● Superior ﬁre resistance

● Enhanced moisture resistance and mold prevention

● Improved indoor air quality (no VOC oﬀ-gassing)

● Greater durability in humid environments

● Better sound attenuation properties

Value Proposition and ROI

Despite higher initial costs compared to traditional framing methods, both OSB and MgO SIP

panels oﬀer compelling long-term value:

1. Energy Eﬃciency: 40-60% reduction in energy costs

2. Construction Time: 50-75% faster assembly than conventional methods

3. Durability: Extended building lifespan with minimal maintenance

4. Tax Incentives: Federal incentives ranging from $2,500-$5,000 per residential unit

The premium cost of MgO board SIPs compared to standard OSB-faced SIPs is generally oﬀset

by reduced maintenance costs, improved ﬁre safety ratings, and enhanced resistance to moisture

and mold, making them particularly well-suited for rental properties and eﬃciency units.

Conclusion

This analysis demonstrates the cost structure and value proposition of both OSB and MgO board

SIP panels for small eﬃciency units with a complete building envelope (walls, roof, and ﬂoor).

While OSB-faced panels oﬀer a more economical entry point with material costs ranging from $7

to $18 per square foot, MgO board SIP panels represent a premium construction solution with

total material costs ranging from $10 to $30 per square foot for complete systems.

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Solar Panel Services

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The inclusion of SIP ﬂoor panels adds signiﬁcant value to the overall building performance,

creating a complete thermal envelope that eliminates thermal bridging throughout the structure.

This comprehensive approach to insulation can further enhance energy savings, though it does

add approximately 35% to the overall material requirements and cost compared to projects that

use only SIP walls and roofs with conventional ﬂoor construction.

The choice between these two options should be guided by project requirements, climate

considerations, and long-term ownership plans. For rental properties, especially in humid

environments or where ﬁre resistance is a priority, the higher initial investment in MgO panels

often justiﬁes itself through reduced maintenance costs and extended building lifespan. For

budget-conscious projects in dryer climates or where ﬁre concerns are less acute, properly

sealed and protected OSB panels can provide excellent performance at a lower initial cost.

The 650 SF one-bedroom eﬃciency unit case study demonstrates that while material costs for

either system may appear substantial at ﬁrst glance (approximately $37,200 - $104,160 total

project cost depending on speciﬁcations), the comprehensive beneﬁts—including reduced

construction time, superior energy performance, and potential tax incentives—present a

compelling value proposition for developers of small residential units. The premium for MgO

panels (approximately $7,000-$30,000 additional for this case study) should be evaluated against

the speciﬁc performance requirements and long-term ownership plans for each project.

References

Aﬀordable Housing NorthStar Group. (2025). The Eﬃciency Model. NSGIA.com.

ACME Panel. (2024, June 3). SIP panels cost - ACME panel structural insulated panels - SIPs.

ACMEPanel.com. https://acmepanel.com/products-pricing/structural-panels-pricing/

Build With Rise. (n.d.). Learn about magnesium oxide structural insulated panels.

BuildWithRise.com.

https://www.buildwithrise.com/products/building-envelope-and-structure/insulation/structural-insu

lated-panels/mgo-structural-insulated-panels

Enercept. (2021, May 13). The real savings when you build with structural insulated panels.

Enercept.com. https://www.enercept.com/blog/what-do-structural-insulated-panels-really-cost

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19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com

Solar Panel Services

______________________________________________

EZ SIPS. (2017, May 15). Insulated panels compare. StructuralInsulatedPanels.com.

https://structuralinsulatedpanels.com/compare/

Innova Panel. (2024, October 24). How much will my SIP building kit cost? InnovaPanel.com.

https://innovapanel.com/sip-building-kit-cost/

Innova Panel. (2024, October 17). SIP installation cost estimating guide. InnovaPanel.com.

https://innovapanel.com/building_kit-2/sip-estimating-guide/

LawnStarter. (2024, November 28). How much do SIP panels cost in 2025? LawnStarter.com.

https://www.lawnstarter.com/blog/cost/sip-panels-price/

MarketsandMarkets. (2025, March 27). Structural insulated panels market size & forecast.

MarketsandMarkets.com.

https://www.marketsandmarkets.com/Market-Reports/structural-insulated-panel-market-8728469

0.html

MyKukun. (2024, October 16). How much SIP panels cost, their advantages and more.

MyKukun.com. https://mykukun.com/blog/sip-panels-cost/

Premier Building Systems. (2023, August 1). Stick framing vs structural insulated panels cost

comparison. SIPs.PremierBuildingSystems.com.

https://sips.premierbuildingsystems.com/blog/what-is-the-cost-comparison-between-sips-and-stic

RAYCORE. (n.d.). SIPs panels cost | RAYCORE SIPs prices. Raycore.com.

https://raycore.com/sips-panels-cost-price/

SIP Supply. (n.d.). SIP panel price per square foot. SIPSupply.com.

https://sipsupply.com/sip-blog/sip-panels-price-per-square-foot/

________________________________________________

19901 Quail Circle

Fairhope AL 36532

701-770-9118

michaelh@nsgia.com