Smart homes: potentials and challenges

Abstract Decentralized distributed clean-energy sources have become an essential need for smart grids to reduce the harmful effects of conventional power plants. Smart homes with a suitable sizing process and proper energy-management schemes can share in reducing the whole grid demand and even sell clean energy to the utility. Smart homes have been introduced recently as an alternative solution to classical power-system problems, such as the emissions of thermal plants and blackout hazards due to bulk plants/transmission outages. The appliances, sources and energy storage of smart homes should be coordinated with the requirements of homeowners via a suitable energy-management scheme. Energy-management systems are the main key to optimizing both home sources and the operation of loads to maximize home-economic benefits while keeping a comfortable lifestyle. The intermittent uncertain nature of smart homes may badly affect the whole grid performance. The prospective high penetration of smart homes on a smart power grid will introduce new, unusual scenarios in both generation and loading. In this paper, the main features and requirements of smart homes are defined. This review aims also to address recent proposed smart-home energy-management schemes. Moreover, smart-grid challenges with a high penetration of smart-home power are discussed.