Energy and life cycle cost analysis were employed to identify the most-cost effective ground envelope design for a greenhouse that employs supplemental lighting located in Ottawa, Ontario, Canada (45.4° N). The envelope design alternatives that were investigated consist of installing insulation vertically around the perimeter and horizontally beneath the footprint of a greenhouse with a concrete slab and unfinished soil floor. Detailed thermal interaction between the greenhouse and the ground surface is achieved by considering 3-dimensional conduction heat transfer within the TRNSYS 17.2 simulation software. The portion of total heat loss that occurred through the ground was approximately 4% and permutations in ground insulation design reduced heating energy consumption by up to 1%. For the two floor designs, the highest net savings was achieved when perimeter and floor zone horizontal insulation was installed whereas a financial loss occurred when it was also placed beneath the crop zone. However, in all cases, the improvement in economic performance was small (net savings below $4000 and reduction in life cycle under 0.2%). Combined energy and life cycle cost analysis is valuable for selecting optimal envelope designs that are capable of lowering energy consumption, improving economics and enhancing greenhouse durability.