The invention relates to the fields of intelligent electricity utilization and energy efficiency monitoring, and more particularly to a method for identifying residential load electricity utilization based on current signal separation. The method includes the steps of firstly, storing current signal data when appliances are running independently; recording existing signals in a circuit as one way of source signals I0 and storing current signal data thereof; after detecting the start of a next appliance, acquiring mixed signals and using a two-step iterative contraction threshold algorithm to recover two-way separation signal frequency domain values therefrom; and calculating a similarity coefficient between the separation signals and the frequency domain values of the stored signals, separating only two ways of signals from the acquired signals, one way of which is independent current signals of a new running load, and the other way of which is the mixed current of the previous moment, and recording the mixed signals at the moment as one way of source signals I0. According to the invention, operation conditions of each single load can be effectively separated from the mixed data when a plurality of loads run simultaneously under a non-invasive electricity data acquisition condition, and the method is an effective realization method of non-invasive load monitoring technology.