The evolution of the smart grid has enabled residential users to manage the ever-growing energy demand in an efficient manner. The smart grid plays an important role in managing this huge energy demand of residential households. A home energy management system enhances the efficiency of the energy infrastructure of smart homes and provides an opportunity for residential users to optimize their energy consumption. Smart homes contribute significantly to reducing electricity consumption costs by scheduling domestic appliances effectively. This residential appliance scheduling problem is the motivation to find an optimal appliance schedule for users that could balance the load profile of the home and helps in minimizing electricity cost (EC) and peak-to-average ratio (PAR). In this paper, we have focused on appliance scheduling on the consumer side. Two novel home energy management models are proposed using multiple scheduling options. The residential appliance scheduling problem is formulated using the multiple knapsack technique. Serial and parallel scheduling algorithms of home appliances namely MKSI (Multiple knapsacks with serial implementation) and MKPI (Multiple knapsacks with parallel implementation) are proposed to reduce electricity cost and PAR. Price-based demand response techniques are incorporated to shift appliances from peak hours to off-peak hours to optimize energy consumption. The proposed algorithms are tested on real-time datasets and evaluated based on time of use pricing tariff and critical peak pricing. The performance of both the algorithms is compared with the unscheduled scenario and existing algorithm. Simulations show that both proposed algorithms are efficient methods for home energy management to minimize PAR and electricity bills of consumers. The proposed MKSI algorithm achieves cost reduction of 20.26% and 42.53% for TOU and CPP, respectively as compared to the unscheduled scenario while PAR is reduced by 45.07% and 39.51% for TOU and CPP, respectively. The proposed MKPI algorithm achieves 22.33% and 46.36% cost reduction compared to the unscheduled case for TOU and CPP while the PAR ratio is reduced by 46.47% and 41.16% for TOU and CPP respectively.
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