Information and Communication Technology(ICT) is the main impetus of the new age smart grids. The two-way communication between the utility and consumer is the most important aspect which makes the grid 'smart.' Energy monitoring systems play a vital role in the evolution of the Smart grid. This paper proposes an XBee based non-invasive smart energy monitoring system which is highly scalable and robust. The proposed system collects real-time data accurately from every node using a compact and portable setup which can be easily installed superficially using a clamp. It offers an IoT based platform for the consumers and the utility where they can monitor and interact with each other. The proposed design is more secure The proposed system design has an accuracy level of 97% and it is about 30% lower cost than its peer in the global market. The proposed design reduces the power consumption by 18% by the use of a pre-paid tariff system. Further, a hardware setup is developed to test the validity and compare the performance of the proposed design.