Optimizing thermal performance of building walls is the key to save energy and to meet indoor thermal comfort demands. The authors reviewed current situation of domestic energy-saving renovations as well as research and development of thermal insulation techniques, like wooden exterior siding panels and wooden frame walls. Prefabricated wooden exterior siding panels were designed with integrated characteristics of energy saving, environmentally consciousness, fire proof and aesthetics. Thermal performance and costs of the panels was analyzed. The panels were featured with energy conservation and could meet the requirements of sustainable development in potential market.