The intermittent nature of photovoltaic (PV), energy conversion losses, appliance compatibility, and load dynamics pose serious challenges to PV-based DC power distribution system in residential buildings. This article proposes a holistic approach to develop a new smart residential building energy management system using internet of things (IoT)-based multifunction compatible relaying system. The proposed system monitors the loads and provides uninterruptible power supply with minimum energy conversion losses. It achieves best operating load configuration, load prioritization in various modes, and demand-side management (DSM). IoT-based multifunction compatible relaying dystem is embedded with Information and Communication Technology-enabled PZEM module, smart relays, and appliance status monitoring devices. The proposed scheme has been implemented in a DC residential building located at Madurai, Tamil Nadu, India, with 1.5 kW PV system. The results are compared in four scenarios. The experimental results prove that the losses are minimized by 18% ensuring uninterrupted power supply. The implementation of DSM further reduces the losses by 5%. The appliances can be monitored through Grafana based in home touch screen.