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In our unfinished basement we had floor to ceiling blanket/roll insulation from the builder. Now that we are finishing it, in order to meet R20, we are removing the bulky blanket insulation and going to a 1.5" rigid foam that is R6, plus the addition of R14 Roxul batts on a 2x4 wall which will be built in front. The foam will give us the thermal break by keeping the studs from touching the concrete wall.

Where the electrical panel is, we want to leave that small area with the blanket insulation intact since the electrical panel and all the wiring is mounted on top, and I don't want to relocate or move the panel to get rid of the insulation.

What is the best way to keep it intact without creating any mold issues?

My thought was to cut back the insulation as much as I can, and install my foam as close as I can. In the process I will leave some excess vapour barrier. Then frame around the panel, and when I add my vapour barrier on top of the studs, I use tuck tape to seal the existing vapour barrier to the new one?

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