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They are typically found in buildings up to three-storeys high but may also be found in taller buildings. However, these panels should not be confused with sandwich panels. SIPs rely on the bond between the foam and the two layers of sheet material to form a load-bearing unit and essentially are used in the same way as timber frame panels or steel frame panels. The foam insulation can be expanded polystyrene, polyurethane (PUR) or polyisocyanurate (PIR). The sheet material can be oriented strand board (OSB) or cement based boards. SIPs or structural insulated panels are prefabricated lightweight building units of a sandwich construction comprising two layers of sheet material bonded to a foam insulation core.

Sips panels