An energy calculation through wireless smart meter using Zigbee is proposed for automatic meter data collection, give intimation through messages displayed on LCD and energy auditing. This system operates with multiple channels and frequency hopping and coexists with potential interferers. This is the project to meet demand and to satisfy consumers. Power consumed by the consumer is monitored by EB through wireless. It aims to reduce the man power for billing. For achieving good communication link among consumer and EB, it is very necessary to find suitable protocol. In this project, we discuss different hardware techniques for tripping, indicating, intimating the consumers and power monitoring, the Microcontroller based system continuously records the readings and the live meter reading can be sent to the LCD display. The microcontroller automatically takes theresponsibility of calculating the bill with the data received from the energy meter, and the tariff provided by the operator and displays the same and alsodiscusses the suitability of Zigbee for required communication link. Zigbee has major role in monitoring and for efficient power utilization. It covers enough area needed for communication and it works on low data rate of 20Kbps to 250Kbps with minimum power consumption