diff --git a/homeassistant/components/__init__.py b/homeassistant/components/__init__.py
index e0b008cab5e..10e18216ea0 100644
--- a/homeassistant/components/__init__.py
+++ b/homeassistant/components/__init__.py
@@ -87,13 +87,21 @@ def setup(hass, config):
                                lambda item: util.split_entity_id(item)[0])
 
         for domain, ent_ids in by_domain:
+            # We want to block for all calls and only return when all calls
+            # have been processed. If a service does not exist it causes a 10
+            # second delay while we're blocking waiting for a response.
+            # But services can be registered on other HA instances that are
+            # listening to the bus too. So as a in between solution, we'll
+            # block only if the service is defined in the current HA instance.
+            blocking = hass.services.has_service(domain, service.service)
+
             # Create a new dict for this call
             data = dict(service.data)
 
             # ent_ids is a generator, convert it to a list.
             data[ATTR_ENTITY_ID] = list(ent_ids)
 
-            hass.services.call(domain, service.service, data, True)
+            hass.services.call(domain, service.service, data, blocking)
 
     hass.services.register(ha.DOMAIN, SERVICE_TURN_OFF, handle_turn_service)
     hass.services.register(ha.DOMAIN, SERVICE_TURN_ON, handle_turn_service)
diff --git a/homeassistant/helpers/__init__.py b/homeassistant/helpers/__init__.py
index 021146d1c32..95dfe7dd65e 100644
--- a/homeassistant/helpers/__init__.py
+++ b/homeassistant/helpers/__init__.py
@@ -36,7 +36,7 @@ def extract_entity_ids(hass, service):
     service_ent_id = service.data[ATTR_ENTITY_ID]
 
     if isinstance(service_ent_id, str):
-        return group.expand_entity_ids(hass, [service_ent_id.lower()])
+        return group.expand_entity_ids(hass, [service_ent_id])
 
     return [ent_id for ent_id in group.expand_entity_ids(hass, service_ent_id)]
 
diff --git a/tests/components/test_init.py b/tests/components/test_init.py
index 4ff334c1b1e..cb170a5c24b 100644
--- a/tests/components/test_init.py
+++ b/tests/components/test_init.py
@@ -6,20 +6,22 @@ Tests core compoments.
 """
 # pylint: disable=protected-access,too-many-public-methods
 import unittest
+from unittest.mock import patch
 
 import homeassistant.core as ha
-import homeassistant.loader as loader
 from homeassistant.const import (
     STATE_ON, STATE_OFF, SERVICE_TURN_ON, SERVICE_TURN_OFF)
 import homeassistant.components as comps
 
+from tests.common import get_test_home_assistant
+
 
 class TestComponentsCore(unittest.TestCase):
     """ Tests homeassistant.components module. """
 
     def setUp(self):  # pylint: disable=invalid-name
         """ Init needed objects. """
-        self.hass = ha.HomeAssistant()
+        self.hass = get_test_home_assistant()
         self.assertTrue(comps.setup(self.hass, {}))
 
         self.hass.states.set('light.Bowl', STATE_ON)
@@ -58,3 +60,24 @@ class TestComponentsCore(unittest.TestCase):
         self.hass.pool.block_till_done()
 
         self.assertEqual(1, len(runs))
+
+    @patch('homeassistant.core.ServiceRegistry.call')
+    def test_turn_on_to_not_block_for_domains_without_service(self, mock_call):
+        self.hass.services.register('light', SERVICE_TURN_ON, lambda x: x)
+
+        # We can't test if our service call results in services being called
+        # because by mocking out the call service method, we mock out all
+        # So we mimick how the service registry calls services
+        service_call = ha.ServiceCall('homeassistant', 'turn_on', {
+            'entity_id': ['light.test', 'sensor.bla', 'light.bla']
+        })
+        self.hass.services._services['homeassistant']['turn_on'](service_call)
+
+        self.assertEqual(2, mock_call.call_count)
+        self.assertEqual(
+            ('light', 'turn_on', {'entity_id': ['light.bla', 'light.test']},
+             True),
+            mock_call.call_args_list[0][0])
+        self.assertEqual(
+            ('sensor', 'turn_on', {'entity_id': ['sensor.bla']}, False),
+            mock_call.call_args_list[1][0])