In the current energy perspective, home energy management (HEM) is an essential requirement for residential consumers due to excessive energy utilization by the household appliances. This paper proposes an improved energy and cost minimization scheme for residential consumers to shape peak load and utility tariffs. An efficient power management algorithm (PMA) has been developed with renewable energy sources (RESs) and energy storage systems (ESS). The PMA is executed using C++ software. The benefits of the RESs and ESS with the proposed PMA techniques are analyzed using three different scenarios. Extensive case studies are carried out to validate the effectiveness of the proposed energy and cost minimization scheme. It is demonstrated that the proposed method may save energy and costs up to 34% and 45% compared to the existing methods.