Selecting an appropriate software tool for a particular energy-management system is a challenging task as there is little information available and several software tools to pick from. Each tool has its own strengths and limitations, and making a right choice is critical for accurate and feasible analyses. This paper reviews more than one hundred simulation software packages that are useful for residential-energy-management system analysis. The tools are analyzed based on the conventional and CEN-CENELEC-ETSI Smart Grid Reference Architecture. Additionally, tools’ availability, sources, typical applications, strengths, and limitations are discussed. A case study on residential energy management and optimization is carried out to show the strengths and limitations of a certain computational tool. It is observed that none of the tools cover all the applications of residential energy systems, however necessary information is provided to help researchers to choose the right tools to meet specific objectives.