Recent increment in electricity tariff and the possible introduction of feed-in tariff from renewable energy increases the interests of energy consumer such as commercial and residential buildings to reduce their energy usage. These actions are mandatory to enhance the general efficiency of electrical systems by shifting peak demand periods rather than to expand transmission network to correspond to peak demand indirectly. However, without a proper system, it is difficult to efficiently manage the energy consumption in a building. With the smart grid and deploying bi-directional smart meters, it is probable to perform load control using innovative home energy management (HEM) system with demand response enabled appliances. HEM system can help reduce overall energy consumption by scheduling home appliances without affecting customers’ comfort level.