Power demand has surged exponentially over the past century. As energy consumption grows, there is a need to upgrade the traditional electricity transmission and distribution network into an interactive service system. To minimize energy wastage, effective metering infrastructure is essential. With advancements in communication technology, modern products are increasingly designed with smart functionalities. In recent years, the Internet of Things (IoT) has facilitated the seamless connection of devices using sensors. This paper proposes an alternative strategy for estimating and charging energy usage, moving away from conventional methods. As part of the smart grid, smart meters, equipped with advanced metering infrastructures (AMI), are extensively distributed and connected to communication networks. This project introduces a novel, low-cost IoT-based smart energy meter (SEM). The proposed system allows users to monitor real-time data on supply voltage, current, frequency, and power consumption directly on their smartphones. Energy usage is measured in kWh, and the system is simulated using Proteus 8.15 software. An IoT platform is developed for remote, real-time monitoring of the metering infrastructure. Additionally, the ESP32 microcontroller is utilized for the design, fabrication, and operation of the IoT-based smart meter. The proposed SEM can also help energy companies to detect potential thefts and faults, thereby ensuring reliable service for their customers.