The increasing number of home appliances and the variation of technologies between them (modern or smart and legacy or old) is the reason for homes energy problem. In addition, increasing the peak load of grids facilities often causes electricity cuts of homes' sectors to reduce the overloads due to peak load. All of these reasons lead to use the energy management systems to reduce energy consumption and automatic control of home appliances to reduce billing for consumers, as well as utilities and decrease peak and peak-topeak demand. In this paper, an Energy Management System to automatic control energy of home appliances will be presented, by using MATLAB software simulation and by hardware using a Microcontroller through prototype to analyze the Demand Response (DR). The proposed algorithm will handle consumption to achieve minimum power cost, decrease peak load according to the consumer priority, and guarantees total home power consumption without a certain limit. The accuracy of the algorithm illustrated through cases of different home scenarios showed that this algorithm is able to reduce the peak load by up to 39.5% compared to that without using the proposed algorithm.