With the increasing importance given to smart grid solutions in end-user premises, demand response (DR) strategies applied to smart households are important topics from both real time application and academic theoretic analysis perspectives, recently. In this study, a mixed-integer linear programming (MILP) framework based evaluation of such a smart household is provided. Electric vehicles (EVs) with bi-directional power flow capability via charging and V2H operating modes, energy storage systems (ESSs) with peak clipping and valley filling opportunity and a small scale distributed generation (DG) unit enabling energy sell back to grid are all considered in the evaluated smart household structure. Different case studies including also different DR strategies based on dynamic pricing and peak power limiting are conducted to evaluate the technical and economic impacts of ESS and DG units. Besides, shiftable loads such as washing machine and dishwasher are also considered in Home Energy Management (HEM) system structure for the effective operation of the household. Moreover, a further sensitivity analysis is realized in order to discuss the impact of ESS and DG sizing on daily cost of smart household operation considering further pros and cons. (C) 2014 Elsevier Ltd. All rights reserved.