Abstract
In this paper we propose an ECG optimization model for a smart home based on DSM. The proposed model is an efficient SHEM strategy. The model is proposed keeping in view the minimization of energy consumption, energy consumption cost and energy generation cost. The model is based on efficient scheduling of appliances and an ECG optimization algorithm is proposed. We are using and optimizing energy from two energy sources namely lceg and lcd which are also known as macrogrid and microgrid respectively. The problem is solved as cost optimization problem using genetic algorithm and mathematically formulated using binary MNKP. The simulation results show that our ECG model efficiently reduces the cost of energy consumption, energy generation and energy consumption utilization.