The rapid surge in the usage of automatic electrical appliances and intense early summer heat waves result in a compounded rise in electricity demand. To meet the residential energy demand, distributed energy resources are being used extensively worldwide. Integrating renewable energy sources with the energy management system impacts the consumers and maintains grid sustainability and reliability, preventing brownouts and blackouts. The study aims to minimize energy consumption and cost at consumers’ premises without hindering their comfort. We have used fuzzy logic to control the HVAC system’s setpoint temperature and a Matlab-based smart load simulator to observe and compare the power consumption pattern of three different loads with and without local generation units. The results of the simulations demonstrate a net saving of 28% with a fuzzy controller, 49% in energy consumption, and 52% in cost when renewable energy sources and energy storage are incorporated.