High quality demand-side management has become indispensable in the smart grid infrastructure for enhanced energy reduction and system control. Most of the demand-side management systems that existed were focusing on the interaction between utility company and its customers. Naturally, each home would be interested in minimizing the utility bill. Given price information, an automated DR controller would manage those devices which are flexible to be controlled, to opportunistically take advantage of the times with lower prices. This may cause a “rebound” peak, due to appliances loads flooding to the times with low prices, a reason very different from the one for the day time peak typically caused by the devices which have to run at that time. Consequently, the Home Energy Management (HEM) systems plays a crucial role in realizing residential Demand Response (DR) programs in the smart environment. It provides a homeowner the ability to automatically perform smart load controls based on utility programs, customer’s preference and load priority. This paper presents the hardware demonstration of the proposed HEM system for managing the end-use appliances. The proposed algorithm manages the household loads according to their preset priority and fixed the total household power consumption under certain limit. This work achieves the purpose of reducing electricity expense and clipping the peak-to-average ratio (PAR).