California Energy Commission – PASSIVE SOLAR HANDBOOK No Difference — This illustrates that a metal building, with one inch of insulation on the inside, shows almost no difference between air temperatures inside and outside. A little Difference — Here we see that with 2 1/2 inches of wood on the outside of a building and one inch of insulation on the inside, the variance in indoor/outdoor temperatures is still negligible. More Difference — When eight inches of concrete is insulated with one inch of insulation on the inside, the numbers get a tiny bit better… Big Difference — You can see that with the same eight inches of concrete, but with the one inch of insulation on the OUTSIDE, the results are TEN TIMES BETTER than the same materials in reverse order.