Abstract With the increasing size of supply and demand growth in the next decades there will be need of smarter distribution system. The installation of large number of electric power generation units may have adverse impact on environment. So smart energy management system is one of the best and novel approaches which enables smart grid operations. During the installation and incorporation of smart grids there are some factors like consumption of electric energy, energy storage, and generation resources should be optimized in such a manner that saves energy, improves efficiency, maintains security and enhances reliability during increasing demand at minimum operating cost. Some of the renewable energy sources may be taken as the pillars for making smart energy buildings which reduces the cost of building systems. From the point of distributed generation it may be considered as future power generation by the installation of renewable energy systems and storage systems. It will lead into smart energy buildings which will be in the form of Off-grid/Hybrid/Grid tied based solar system. Due to the development of smart techniques like fuzzy systems and artificial neural network system it is helpful to reduce billing cost of energy building systems. Green house gas emission is also a serious concern during the installation of energy buildings so hydro or wind energy systems are fully weather dependent and they can reach up to only 14% generation of electricity due to intermittent sources in nature. To overcome the problem of more energy demand and gas emission a new method proposed such as smart system services for the improvement of building performance. This paper deals with advanced techniques for smart home energy management system in order to control its operations in reliable, secure and economical manner.