Abstract Energy consumption has become an increasingly controversial issue in the modern world. Among the widest range of energy consumers, residential buildings consume the largest amount of energy most of which is consumed by air conditioning systems in tropical countries. This paper attempted to examine energy saving in building elements such as walls, floors, windows, roofs, and ceilings and how the integration of such optimized elements in conjunction with effective air quality factor can contribute towards an ultimate energy efficient design. A typical two-storey terraced house in Kuala Lumpur, Malaysia was chosen to model energy usage by means of dynamic building Simulation. A case study was modeled using Revit Architecture software and analyzed using energy analysis software. Current energy consumption patterns were identified and the optimal level of energy usage was determined by replacing components with new energy efficient materials. Afterward, a Design of Experiment (DOE) method was used and the best combination of factor was identified. The results indicated that in residential buildings in tropical regions, changing ceilings and ceiling materials are the most effective way to reduce energy consumption; moreover, wall materials and inside temperatures were in the next levels of significant factors respectively. These results can be used to help building designers achieve optimum cooling load savings.