The advancements in renewable energy technologies direct the power sector to focus on power generation from renewable energy resources (RER) as an alternative solution for meeting the future demand. Nowadays residential buildings are becoming smarter with wide use of smart appliances, integration of information and communication technology, and in-house power generation using RER. In this paper, an intelligent residential energy management system (IREMS) for prosumers of smart residential buildings is proposed, and its benefits are demonstrated through a case study. The primary objective of IREMS is reduction in electricity bills while maintaining the power demand under the maximum demand limit subjected to the various constraints governing the operation of household loads and RER. The IREMS achieves the objective by scheduling the schedulable loads during low pricing intervals while considering the operational dynamics of nonschedulable loads and availability of RER. IREMS also manages the battery energy storage in such a way so as to reduce the power dissipated through the dump load when excess power is available from RER due to the utility-defined power export limit to grid. Further, an optimal resources sizing algorithm is used to choose the size of RER and battery storage for the effective utilization of available renewable energy. © 2007-2012 IEEE.