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This paper provides an analysis of challenges and available solutions for exterior insulated panels suitable for deep energy retrofits of existing building envelopes. The analysis covers a review of available technologies that provide flexible retrofit insulated panels suitable for multiple climates and building typologies. Moreover, the paper proposes a new design for insulated retrofit panels that account for the majority of identified technical risks including cost, architectural diversity, climate variations, structural concerns, moisture resilience, air sealing, and water sealing. Additionally, the proposed design can be easily installed with minimal disruption to the occupants. A series of parametric and optimization analyses is carried out to identify the optimal design specifications for insulated panels suitable for deep retrofits of existing US housing stocks. The analysis results show that the optimal design criteria for the insulated panels can reduce heating and cooling energy consumption by up to 80% and HVAC capacities by 70%. Moreover, the results indicate that these insulated panels are highly cost effective for retrofitting US housing units located in cold climates.