ABSTRACT Buildings account for a significant portion of global energy use and consumption. Buildings have substantial energy consumption due to the use of heating, ventilation, and cooling systems. It is evident that the insulation materials used in the design of building envelopes can efficiently reduce the cost of air conditioning by reducing external heat gains and losses. Additionally, the use of environmentally friendly and cost-effective can be beneficial from an environmental standpoint. This paper aims to evaluate the potential for cost savings in the air conditioning of buildings incorporated with silica aerogel fiberglass insulation in hollow concrete bricks (wall) and hollow roof tile (roof). Silica aerogel fiberglass insulation is extensively used for heat insulation purposes, including building insulations, due to its superior thermal insulation and flame retardant properties. The thermo-physical properties of silica fiberglass insulation and building materials were determined experimentally as per ASTM D 5334 standards. Twenty distinct building design concepts are investigated in this study, each featuring insulation-integrated concrete blocks composed of silica aerogel fiberglass: (WEM1) insulation layer in the outer side, (WEM2) insulation layer in the center, (WEM3) insulation layer in the inner side, (WEM4) insulation layers in the outer-middle, (WEM5) insulation layers in the middle-inner, and (WEM6) insulation layers in the outer-inner sides. Additionally, two arrangements of insulation-stuffed roof tiles, REM1 above the RCC and REM2 below the RCC. In addition, novel building designs integrated with insulation were analyzed numerically, related to environmental conditions that refer to two different scenarios in India (hot dry and composite climates). Thermo-economic analysis of novel wall and roof designs with silica fiberglass insulation materials on air-conditioning costs, carbon dioxide emissions, and payback time are compared with conventional roof and wall patterns. The thermo-economic analysis was carried out based on the number of degree-hours of heating and cooling to determine the building’s annual energy usage. The building model arrangement (WEM6-REM1), which consists of an insulation composite wall (WEM6) and insulation roof tile (REM1), demonstrated the greatest annual air conditioning cost savings of 3.4 $/m2/year and 1.74 $/m2/year when compared to conventional building design for climatic conditions of Kurnool and Gauhati. The building model arrangement (WEM6-REM1) composed of silica fiberglass aerogel insulation exhibits the highest reduction in carbon emissions of 65 kg/kWh and 33 kg/kWh, when compared to conventional building design analyzed in both hot-arid; (Kurnool) and composite (Gauhati) climatic conditions. The placement of insulation in the roof alone (REM1) has the shortest payback duration of 2.15 years. The results of this study point to a viable approach to enhancing building design decision-making and narrowing the performance gap in sustainable and energy-efficient strategies.