Book excerpt: Traditional thermal designs of building envelope assemblies are based on static energy flows, yet building envelopes are subject to varying environmental conditions. This mismatch between the steady-state principles and their dynamic operation can decrease thermal efficiency. Design work supporting the development of low-energy houses showed that conventional insulations may not always be the most cost effective solution to improvement envelope thermal performance. PCM-enhanced building envelopes that simultaneously reduce the total cooling loads and shift the peak-hour loads are the focus of this report.