Electrical energy consumption has become a key factor to indicate the economic progress of a nation. To meet the increased energy demand by maintaining environmental aspects, more focus is laid on usage of renewable energy sources. This has paved way for hybrid energy systems comprising of different combinations of conventional and non-conventional energy sources. Smaller groups from larger utility grids termed as microgrids enhances distribution of electric power keeping in view of varying load demand resulting in an effective energy management method at the demand side. Monitoring can be implemented in a productive way in a microgrid by employing ‘Internet of Things (IoT)’ technology meeting utility concerns and the end user requirements. The aim of this paper is to explain the use of IoT for controlling electrical loads and thereby maximizing energy savings.