As NetZero Energy Homes (NZEHs) and Distributed Energy Generation (DEG) systems gain more market penetration, keeping the electricity distribution grid safe, reliable and affordable becomes an increasingly challenging task. NZEHs, electric vehicles, and energy storage will further add dynamic complexity to the problem. The large-scale application of NZEHs combined with DEGs, such as smart communities, will add even more complexity to the traditional grid and, in the near future, will threaten the grid stability and reliability. Consequently, traditional grids are at risk of failing to meet the large-scale application of energy-efficient homes and NZEHs. Hence, the long-term performance of energy supply and demand plus the overall grid interaction must be investigated. In this context, this research aims at developing a novel design framework to mitigate the impact of housing energy supply and demand on the grid from a bottom-up perspective by (1) investigating the performance of DEG systems and load patterns, (2) improving the grid interaction and load match, (3) reducing household loads, and, finally, (4) bridging the gap between current residential energy practice and the proposed future practice incorporating smart grid technology.