As smart home technology advances, the quest for sustainable energy management solutions grows. This study examines the interaction between solar energy systems and smart home activities, focusing on using an ESP32 microcontroller to regulate lighting and temperature. The proposed system combines sophisticated software algorithms with authentic hardware components to allow for real-time monitoring and control of light and temperature conditions, as well as online tracking of solar system data. Communication protocols and the ESP32 microcontroller create an integrated smart home system that allows homeowners to control their environment remotely using smart mobile devices. Solar panel installation enhances energy efficiency and decreases dependence on traditional grid-based electricity, promoting an environmentally friendly household setting. This study demonstrates how smart home systems may significantly change household energy usage patterns by evaluating hardware design and software execution to ensure comfort, safety, and sustainability. This research showed considerable advancements in energy conservation and improved home environmental control. We integrated smart controllers and light sensors to reduce daily lighting energy consumption from 0.17 kWh to 0.12 kWh, and our smart system reduced the initial air conditioning energy needs from 15.6 kWh/day to 14.48 kWh/day. These results indicate improvements in energy management and home environmental control.