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This paper presents the methodology developed to identify the least cost specifications in residential new housing constructions to achieve improved energy efficiency standards, including the “EnerGuide 80," which is a requirement of the 2012 Ontario Building Code (OBC) and beyond, ultimately reaching the net zero energy (NZE) level. The proposed methodology considers the initial capital cost and the life cycle cost implications of achieving such standards while maintaining an adequate level of thermal comfort. The results showed that, based on the life cycle cost analysis of 30 years, the combination of least cost upgrades includes improved thermal resistance in the building envelope components (ceiling, both above and below-grade walls, floors, and basement slab) and installation of the most efficient heating, ventilating, and air-conditioning (HVAC) system, resulting in 25% reduction in the estimated annual space and domestic hot water (DHW) energy consumption, while achieving the EnerGuide Rating of 82, thereby meeting the requirements of the 2012 OBC. With the installation of a photovoltaic (PV) system, the estimated profit of up to $70,038 could be achieved through Ontario’s micro Feed-in Tariff (FIT) program.