it depends on the r-value of the insulation and the area or temperature range of the climate it is to be installed
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Insulation helps to keep heat inside a house, meaning as less heats escapes there is no need to heat the house up, normally by Central Heating, therefore saving energy.
Technically, no. However, in this context, yes. It wouldn't actually save energy, but it can lower the amount if energy needed to do a task. For example, if you insulate your house well, you would not need to heat/cool is as aggressively because the hot/cold air would not pass through the walls to the outside air nearly as easily as a house that has no or poor insulation.
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it costs about £600
20000 / 12 = 1666.67