First-year engineering students are often introduced to the engineering design process through project-based learning situated in a concrete design context. Design contexts like mechanical engineering are commonly used, but students and teachers may need more options. In this article, we show how sustainable building design can serve as an alternative for students of diverse backgrounds and with various interests. The proposed "Net Zero Energy Challenge" is an engineering design project in which students practice the full engineering design cycle to create a virtual house that generates renewable energy on-site, with the goal to achieve net zero energy consumption. Such a design challenge is made possible by "Aladdin," an integrated tool that supports building design, simulation, and analysis within a single package. A pilot study of the "Net Zero Energy Challenge" at a university in Mid-Atlantic United States suggests that around half of the students were able to achieve the design goal.