Grade 2 Insulation is considered a medium / moderate quality installation job. This is based off of a 3 tier rating system originally developed by RESNET. Per the standards: It is an installation job with moderate to frequent installation defects: gaps around wiring, electrical outlets, plumbing and other intrusions; rounded edges or “shoulders”; or incomplete fill amounting to less than 10% of the area with 70% or more of the intended thickness (i.e., 30% compressed); or gaps and spaces running clear through the insulation amounting to no more than 2% of the total surface area covered by the insulation.