Carbon dioxide is the largest component of the human footprint and one of the major components of all greenhouse gases. The expected increase in population will lead to growth in energy consumption and greenhouse gas emissions. The building industry has the highest potential for reducing greenhouse gas emissions. Therefore, buildings should become not only efficient consumers but also energy producers, not a simple task in dense cities. The paper describes the feasibility and limitations of near zero energy design in highly dense urban conditions. The study was carried out by examination and comparison of various density design, alternatives of an existing urban plot in the coastal climate zone of Israel. Increased dwelling units’ number leads to higher total energy use on the one hand and mutual shading of new high-rise residential buildings on the other. Preserving solar rights for PV systems installation become more complex. The relation between urban density and solar rights in urban design, energy consumption and energy generation within plot borders and their implications are presented and discussed in the paper.