With the rapid advancements in technologies like smart grid, network communication, information infrastructures, bidirectional communication medium’s, energy conservation methodologies and diverse techniques, Home area networks (HANs) have undergone a revolutionary change pertaining to various areas of power consumption domains like electricity usage patterns, energy conservation at consumption premises, etc. Under a robust smart grid paradigm, modern home equipped with HEMS contributes significantly towards efficiency improvement, economizing energy usage, reliability, as well as conserving energy for distributed systems. The objective of the paper is to present a comprehensive review covering the various technical and conceptual aspects of efficient power management at home front. A systematic review proposed by several researchers till date in this area is considered. The study focuses on the concepts, technical background, architecture and infrastructure along with various schemes as well as goals including various issues and challenges faced with HEMS systems. The research paper proposes a novel methodology for improvising the home design architecture by incorporating the concept of green building in order to reduce the energy consumption done by a resident at their home front. The concept of HEM systems or SHEMS is not just about proposing new models to save energy, power management, or making energy efficient appliances to be used at home front but also about creating awareness among the consumers and motivating them to participate in the activities related to power conservation in active manner. The study have shown the, impact of various schemes over the peak load reduction with Optimization based residential energy management (OREM) technique showing the reduction in power consumption showing a cut down of about 35% in the overall electricity bill.