Smart grid technology has been recognized as a promising solution for the next-generation energy efficient electric power systems to mitigate energy crisis. Smart grid provides highly consistent and reliable services, efficient energy management practices, smart metering integration, automation and precision decision support systems and self-healing facilities. The smart power grid introduces a sensing, monitoring, and control system that provides end users with the cost of energy at any moment through real-time pricing. The classical power system operation has no control over the loads except in an emergency situation when a portion of the loads can be dropped as needed to balance the power grid generation with its loads. Furthermore, the smart power grid supplies the platform for the use of renewable energy sources that acts as a safeguard against a complete blackout of the interconnected power grid. In this work, all the concepts involved in smart grid mechanism is implemented with PIC18F452 microcontroller and other supplementary components. A solar module with storage capacity is connected to the proposed system for minimizing grid energy consumption and plays a primary energy source for maximum utilization of green energy. This intelligent device may inherently reduce the consumption of electrical energy during peak hours and allow consumers to sell back electricity into grid using bi-directional technique. Barriers, challenges, benefits and future trends regarding the technologies and the role of users have also been discussed in this paper.