We are at an interesting juncture in our power and energy generation history. Not only we are to reduce our dependence on foreign sources of fuel and energy sources, but we must also develop inexpensive and indigenous sources of power and energy that are safe, reliable, and environmentally benign. The objective of this research is to save heating energy consumption of apartments which accounts for about 7% of the total energy consumption. To minimize heat loss during the transportation of heat from supplier to consumer, several pipe insulation materials were tested and analyzed. Economic analysis was done using LCC(life cycle cost) method. The results show that the life cycle cost of polyethylene insulation is 9% less than the glass wool insulation, and 17% less than the NBR elastomeric flexible cellular insulation.