Optimizing energy management for household appliances is essential for maximizing domestic energy utilization and enabling preventive maintenance. Recent studies indicate that traditional forecasting approaches frequently lack the necessary accuracy and real-time learning capabilities required for effective management of household energy. This study demonstrates the implementation of a comprehensive strategy that integrates Internet of Things (IoT) data, machine learning (ML), and explainable artificial intelligence (XAI) to improve the accuracy and interpretability of predicting energy usage in residential buildings. Our research focuses on the rising issues faced by IoT-based smart systems, partic- ularly the deficiencies in the performance of current solutions. Therefore, as compared to the other 17 models that were examined, polynomial regression demonstrated outstanding performance. Our solution utilizes a non-intrusive sensor to collect data without disrupting its operation. Real-time data collecting is achieved through a Flask-based web page with Ngrok for external access.The efficacy of the proposed system was assessed using many metrics, yielding highly satisfac- tory results: the root mean square error (RMSE) was 0.03, the mean absolute error (MAE) was 0.02, the mean absolute percentage error (MAPE) was 0.04, and the coefficient of determination (R²) was 0.9989. However, modern cutting-edge methods still face considerable hurdles when it comes to interpretability. In order to tackle these problems, we include XAI techniques such as SHAP and LIME. Explainable Artificial Intelligence (XAI) improves the interpretability of the model by elucidating the impact of various variables on energy consumption forecasts. Not only does this increase the effectiveness of the model, but it also promotes comprehension of the data and enables them to identify the elements that influence home energy usage.