There is a rapid growth in Smart Grid and Internet of Things (IOT) technologies in the recent days. IOT is a connection of network of physical objects with the internet through sensors and other technologies using any service. Smart Grid is a data communication network which is incorporated with the power grid to assemble and study data that are gathered from transmission lines, distribution substations, and consumers. IOT is widely used in smart energy monitoring and controlling, automation in industries, and a variety of applications. IOT devices are used to monitor and control grid parameters for steady and useful power delivery at various stages of smart grid. These technologies, when used in combination offer energy optimization and user friendliness in terms of monitoring and controlling of electronic devices. Although IOT incorporation in the Smart grid domain contributes lots of service, the threats needs to be solved for the efficient use of the grid. An extensive survey of IOT based Smart Grid environments to provide effective solutions to these threats is done in this paper. The software solutions, challenges such as stability in connection, communication, cost and information privacy and security is also discussed broadly

Keywords : IOT, Smart Grid, Monitoring, GSM Modem, Sensors.