With the scientific community in general agreement that climate change is a man-made event caused primarily by carbon dioxide (CO2) and other greenhouse gases released into the atmosphere as a result of the combustion of fossil fuels, there has been increased interest into energy generation from renewable resources and an effort to curtail our current consumption through energy efficiency strategies. Currently, buildings are the largest offenders and account for approximately 39% of global CO2 emissions and consume 70% of the electrical load in the U.S. As a result, there is a push to implement energy-efficient design and construction strategies with onsite solar photovoltaic (PV) energy generation in an effort to curtail energy consumption projections within the construction industry. However, advanced envelope design paired with PV typically has a more extended payback period than traditional, and commonly less efficient methods that more-heavily rely on a centralized, and often carbon-fed power infrastructure. While designers and builders have limited control over the hard costs associated with mechanical systems and insulating materials, they do have control over design choices and construction methods. The central objective of this research is to determine optimal energy efficient design choices at various levels of net energy reduction, then to determine how and if these costs can be offset through prefabricated, modular construction. The majority of industry efforts into prefabrication has primarily emphasized minimizing initial costs, often at the expense of operating costs and maintaining energy efficiency in the home. There is a lack of research that combines the cost savings achieved through modular design, with the implementation of these efficient construction strategies in an effort to promote affordability of energy efficient homes that produce power from renewable sources. Combining prefabrication processes achieved through modular design will help offset higher initial construction costs associated with more expensive strategies aimed at reducing our dependence on fossil fuels.