Energy-saving is a very important issue that affects the end-users, power system quality and the global environment. Through the periodic energy bills of various energy agencies in Oman, it is possible to search for the causes of excessive consumption to reduce it with the search for the optimal solution with alternative energy sources. The main task of this research work is to help to reduce the electricity and energy costs by using Demand Side Management (DSM) approaches represented by the application of certain rationalization principles of energy usage and by using a model predictive control (MCP). As a result of that, an optimization algorithm for large-scale dynamic systems that take account of electricity costs, the work cycle, user requirements, system constraints and other input information is developed. The work used qualitative data from the perspective of the consumer, which was collected directly by the researcher or obtained from various sources related to the problem. An energy side management or simply energy demand response is proposed which ensures the optimum use of the equipments in the frame of a smart house.