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Globally, and especially in developing nations, the increasing demand for energy, coupled with transmission and consumption inefficiencies, poses significant challenges. As the proliferation of household appliances and electric vehicles (EVs) rises, dependency on electricity surges, further straining the existing power infrastructure. While renewable energy resources (RERs) such as solar and wind gain traction, the reliance on conventional utilities persists, especially in homes. This reliance, especially on fossil fuels, intensifies environmental concerns due to greenhouse gas emissions. This paper presents the smart household energy management system (SHEMS), designed to optimize domestic energy consumption. Capitalizing on the Internet of Things (IoT), SHEMS offers real-time energy monitoring and management, providing homeowners an adaptable architectural framework to regulate their energy use. Fundamental component of SHEMS is a controller interfacing with all household loads and the main meter, ensuring timely data on power consumption. Notably, during peak times, the system can autonomously adjust appliance settings, balancing energy savings without compromising user convenience. Paired with a user-friendly application, SHEMS provides individuals comprehensive oversight of their consumption patterns, fostering more sustainable energy use in an increasingly electrified world. [ABSTRACT FROM AUTHOR]