Summary
In this manuscript proposes an efficient hybrid approach for home energy management with distribution system based on Internet of things (IoT). The proposed hybrid approach is the joint execution of Forensic‐Based Investigation (FBI) and Isolation Forest, hence named as FBI‐iForest approach. The main purpose of the proposed method is to optimally manage the power and resources of the distribution system. The proposed approach considers two main factors like user satisfaction and cost of energy utilization. The proposed approach is designed under the environment of smart grid, which consists of photovoltaic (PV), wind turbine (WT), micro turbine (MT), and battery. The household appliance management is one of the important factors for smart grid system for cost saving purpose. The proposed system, data acquisition module of IoT is interfaced to every home appliance provides an IP address. The demand response of each device is collected by the IoT object transmitted to the centralized server. The transmitted data is operated through the FBI‐iForest approach. The IoT‐based energy management provides flexibility of these networks as well as optimum use of available resources. At last, the proposed model is realized on MATLAB/Simulink platform. The cost of the proposed method for case 1, 2 and 3 achieves $2.8, $340 and $1100.