Traditional power grids are being transformed into smart grids (SGs) to address the issues in the existing power system due to uni-directional information flow, energy wastage, growing energy demand, reliability, and security. SGs offer bi-directional energy flow between service providers and consumers, involving power generation, transmission, distribution, and utilization systems. SGs employ various devices for the monitoring, analysis, and control of the grid, deployed at power plants, distribution centers, and in consumers' premises in a very large number. Hence, an SG requires connectivity, automation, and the tracking of such devices. This is achieved with the help of the Internet of Things (IoT). The IoT helps SG systems to support various network functions throughout the generation, transmission, distribution, and consumption of energy by incorporating the IoT devices (such as sensors, actuators, and smart meters), as well as by providing the connectivity, automation, and tracking for such devices. In this paper, we provide a comprehensive survey on the IoT-aided SG systems, which includes the existing architectures, applications, and prototypes of the IoT-aided SG systems. This survey also highlights the open issues, challenges, and future research directions for the IoT-aided SG systems.