Advances in CMOS technology have made high-resolution image sensors possible. These image sensors pose significant challenges in terms of the amount of raw data generated, energy efficiency, and frame rate. This paper presents a design methodology for an imaging system and a simplified image sensor pixel design to be used in the system so that the compressed sensing (CS) technique can be implemented easily at the sensor level. This results in significant energy savings as it not only cuts the raw data rate but also reduces transistor count per pixel; decreases pixel size; increases fill factor; simplifies analog-to-digital converter, JPEG encoder, and JPEG decoder design; decreases wiring; and reduces the decoder size by half. Thus, CS has the potential to increase the resolution of image sensors for a given technology and die size while significantly decreasing the power consumption and design complexity. We show that it has potential to reduce power consumption by about 23% to 65%.