Energy conservation is the effort made to reduce the consumption of energy by using less of an energy service. This can be achieved either by using energy more efficiently or by reducing the amount of service used. Energy conservation is a part of the concept of Eco-sufficiency. Energy consumption monitoring at domestic or industrial locations is required to understand the trends over a period of time. The data acquired during monitoring is useful for taking necessary steps to save the energy. In this project we have developed a Smart Energy Meter system using GSM technology which also has a additional component added which is capacitor which can send you updates about the energy consumption at a particular interval of time and the capacitor is added as the output of the energy meter so as to lower the Electricity Bill.