The Industrial Revolution and technological advancements have led to the densification and expansion of cities. In urban environments, residential buildings are common, and optimizing energy use in these structures is achieved by focusing on key parameters during the early design phases. These parameters can be tested through simulations. This study aims to define the scope of energy simulations in residential design to contribute to design optimization and reduce energy consumption. A systematic literature review and qualitative analysis were employed, using the PRISMA protocol for data collection and Vosviewer and Bibliometrix tools for bibliometric analysis. The keywords obtained were subjected to qualitative analysis. The research revealed the absence of a standardized approach in simulation studies. To address this, a nine-step framework has been proposed. A discrepancy between the objectives of certain studies and the keywords used was identified. Themes were created based on the studies’ objectives, and keywords were recommended accordingly. Several studies have determined the energy potential of buildings during the occupancy phase. Simulations should be integrated into the early design phase to facilitate pre-design optimization. A framework for residential simulation methodology was developed, believed to enhance the validity of studies and facilitate result comparisons. Minimizing energy consumption is a primary objective in residential buildings. The recommendations developed align with the United Nations’ Sustainable Development Goal 11: Sustainable Cities and Communities.