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This paper investigates the month-wise impact of COVID-19 conditions on residential load due to people's presence at home during office hours in Memphis city, Tennessee, USA. The energy consumption patterns of four consumers are analyzed based on the data available from pre-COVID to continuing COVID-19 situations. It is observed that the energy consumptions from April 2020 to June 2021 for all families have increased during office hours than that of pre-COVID months. Therefore, the impacts of the increased loads on distribution transformer are analyzed in terms of hottest spot, top-oil temperature, and loss of transformer life. Moreover, an experimental setup is made to produce the harmonics in currents of non-linear residential load which has detrimental effects on temperature rise of distribution transformer. In addition, this work proposes implementation of harmonic filter at the load side considering the impact of harmonics produced by loads to reduce the temperature rise due to the increased load consumption and presence of harmonics in currents produced by the load. The rise in temperatures and the loss of life of distribution transformer with and without the proposed solutions are simulated in MATLAB to show the efficacy of the proposed solution. Moreover, cost value analysis among different methods, which can be implemented to reduce the adverse impact on distribution transformer, are provided to rank the available methods. [ABSTRACT FROM AUTHOR]