The more insulation used, the more energy efficient a home is. If a home can trap in heat (during the months when the outside air is much colder) or keep heat from seeping in (when it’s hot out and we use air conditioning) then it doesn’t take as much energy to keep the house at a comfortable temperature. This is because energy is wasted if a house is not well-insulated, because the heat created by the house’s heating system is not contained, and instead it is lost to the outside atmosphere. Newer energy efficient homes have insulating materials (and even building materials for the walls themselves) that are very good at reflecting or trapping heat, rather than conducting it. Also it is important that houses are sealed around windows and doors.
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