Residential buildings design formation varies according to the environmental, constructional and functional requirements. The environmental aspect is the most significant requirements that connect with energy performance. Last decades considerable attentions were made about the energy consumption for residential buildings. Previous studies showed that total energy consumption for residential building reached to 40% from the total energy consumption. This research problem is that no obvious recent research about the effect of the low rise residential buildings design formation as a prototype of residential buildings in Iraq on reducing energy consumption. In this study several options for low rise residential buildings design formation were selected for the assessment of energy consumption. Software simulations were used to estimate the energy performance model for different residential buildings design formation. Results demonstrate that contiguity of residential buildings had better results in energy consumption reached to 48% as compared to buildings with no contiguity. Also buildings with north orientation reduce energy to 14% as compared to other orientations.