The electrical energy crisis is a global problem that all developing countries face in general and Iraq in particular. A lot of body in the literature holds that lifestyle and consumption choices strongly affect residential energy consumption. Hitherto releasing energy savings in households is not simple. Previous studies indicate that the lighting requirements for the residential sector consume a significant amount of Iraq’s energy resources. In this study, the authors analyzed the energy consumption of 48 samples of residential loads at different dwellings in the country. In addition, the simulation study based on the DIALUX Evo 8 lighting software has been conducted, which shows the energy consumption savings for various types of luminaires. The results clearly show that a relatively large portion of lighting system consumption is because of the poor distribution of lighting fixtures and the use of relatively high-consuming traditional lighting luminaires. The study deduces that the energy efficiency of the lighting system may be improved by about 60% by simply replacing the traditional lighting systems with modern LED-technology-based systems. It is also necessary to redistribute lighting fixtures using state-of-the-art lighting software for achieving adequate levels of lighting and visual comfort for humans.