This study investigated the structural safety of the developed panel‐to‐base joint technique for full‐size precast lightweight aggregate concrete (PLC) insulation panels subjected to cyclic lateral loads. The main parameters were the compressive strength of insulating concrete and the safety factor of the joint reinforcing bar for connecting with the base or beam. The test results revealed that the PLC insulation panel specimens with a safety factor of 1.0 experienced severe pinching effect and low ductile performance. However, the PLC insulation panel specimens with a safety factor of 1.6 exhibited higher flexural moment capacity, displacement ductility ratio, and work damage index than those with a safety factor of 1.0. Consequently, the overall flexural behavior of the PLC insulation panel specimens with a safety factor of 1.6 can be developed stably, resulting in satisfactory seismic connection performance requirements specified in NEHRP. Meanwhile, the developed panel‐to‐base joint using the joint reinforcing bar and L‐shaped steel plates can be considered as a fixed end according to the analysis of the collapse mechanism, as with spliced sleeve or welding plate joints.