Traditional concrete buildings exhibit low energy consumption and high heat loss, which results in a larger environmental problem. Precast insulation walls are proposed for strengthening thermal insulation efficiency and mitigating heat loss. Numerous studies have investigated the thermal performance of insulation walls over the past decades. However, gaps remain in practical engineering applications. This study aims to bridge these gaps by providing practical design recommendations based on experimental research. Nine different types of precast insulation walls were tested to examine the thermal performance, and the parameters of the insulation material, insulation form, insulation layer thickness, and concrete rib width were investigated. Then, numerical models of these walls were developed for simulating the thermal performance of the tested specimens. Finally, a six-story student apartment model using designed walls was developed to assess energy consumption in two distinct climate zones: the hot summer and cold winter zone of Changsha City, and the cold zone of Harbin City. The results indicate that the precast insulation wall with external insulation form shows better thermal performance than the sandwich insulation form. It is recommended to use precast insulation walls with 50 mm extruded polystyrene (XPS) external thermal insulation form in Changsha City and 80 mm XPS external thermal insulation form in Harbin City. Furthermore, buildings using precast insulation walls can significantly reduce energy consumption by 49.25% in Changsha and 49.38% in Harbin compared to traditional concrete wall buildings. Based on these findings, suitable design suggestions for this precast concrete wall panel building composed of insulation walls are given.