The high demand for electricity and the consequent increase in electricity price as lead to recentstudy in reducingthe total operating cost of a residential building. This research work focuson energy management in a residential green house.Two innovative approach is proposed to solve excessiveoperating cost of a residential green house, the system inputs which consist of temperature, activity level, and energyconsumption is based on five household occupant in Atlanta, Georgia, also a Chevy volt of 16kWh is used in the case studies.Moreover, for a single residential house, the overall goal is to reduce the total operating costs and the carbon emissions for a future residential house, while satisfying the end-users’ comfort levels. This paper models a wide variety of home appliances and formulates the economic operation problem using mixed integer linear programming. Case studies are performed to validate and demonstrate the effectiveness of the proposed solution algorithm. Simulation results also show the positive impact of dispatchable loads, distributed renewable generators, and distributed energy storage devices on a future residential house.For networked residential houses, we present an optimization of total operating cost of an interconnected nanogrid (ING) considering the effect of V2H andV2G, which helps tominimizethe total operating cost. The major objective is to reduce carbon emission, total operating cost and the peak load demand while satisfying the customer preferences of each nanogrid. A mixed integer linear program (MILP) is formulated to solve the economic operation of the ING. Furthermore, case studies are performed to demonstrate the positive impact INGs have on minimizing total operating cost. Advisors/Committee Members: Su, Wencong (advisor), Niewstadt, Lin Van (committee member), Bai, Kevin (committee member).