This paper examines the benefits of adding microencapsulated phase change material (PCM) to concrete used in building envelopes to reduce energy consumption and costs. First, it establishes that the time-dependent thermal behavior of microencapsulated PCM-concrete composite walls can be accurately predicted by an equivalent homogeneous wall with appropriate effective thermal properties. The results demonstrate that adding microencapsulated PCM to concrete resulted in a reduction and a time-shift in the maximum heat flux through the composite wall subjected to diurnal sinusoidal outdoor temperature and solar radiation heat flux. The effects of the PCM volume fraction, latent heat of fusion, phase change temperature and temperature window, and outdoor temperature were evaluated. Several design rules were established including (i) increasing the PCM volume fraction and/or enthalpy of phase change increased the energy flux reduction and the time delay, (ii) the energy flux reduction was maximized when the PCM phase change temperature was close to the desired indoor temperature, (iii) the optimum phase change temperature to maximize the time delay increased with increasing average outdoor temperature, (iv) in extremely hot or cold climates, the thermal load could be delayed even though the reduction in daily energy flux was small, and (v) the choice of phase change temperature window had little effect on the energy flux reduction and on the time delay. This analysis can serve as a framework to design PCM composite walls in various climates and seasons and to take advantage of time of use electricity pricing.