Demand Side Management (DSM) through optimization of home energy consumption in the smart grid environment is now one of the well-known research areas. Appliance scheduling has been done through many different algorithms to reduce peak load and, consequently, the Peak to Average Ratio (PAR). This paper presents a Comprehensive Home Energy Management Architecture (CHEMA) with integration of multiple appliance scheduling options and enhanced load categorization in a smart grid environment. The CHEMA model consists of six layers and has been modeled in Simulink with an embedded MATLAB code. A single Knapsack optimization technique is used for scheduling and four different cases of cost reduction are modeled at the second layer of CHEMA. Fault identification and electricity theft control have also been added in CHEMA. Furthermore, carbon footprint calculations have been incorporated in order to make the users aware of environmental concerns. Simulation results prove the effectiveness of the proposed model.