Economic microgrid planning is the most desirable aspects of present deregulated power scenario. This is implemented here by procuring load shifting demand response management with advanced controlled strategies. A residential microgrid model comprises of power sources as combined heat and power (CHP) systems, renewable energy resources (RERs), residential consumers and energy storage devices. In such models, during the off-peak hour renewable energy resources are enormously available however RERs are mostly unavailable during peak load hours. Thereby, these loads are satisfied mostly by CHP sources. Since, cost of CHP power is more compared to RERs based power; the electricity billing of the microgrid model is high and needs to be reduced. Hence, major focus is given to utilize renewable energy resources by procuring load shifting demand response energy management algorithm without compromising the comfort of the consumers. To implement the same, the consumers are classified into three categories i.e., controlled, semi-controlled and un-controlled loads which further are operated by fuzzy logic controller at different operating modes considering the various inputs like time of operations, comfort level, temperature deviations and types of connected load. Here, FLC sets rule base to shift the peak hour loads to off peak hour along with energy optimizations of various loads while maintaining the desired comfort level of the consumers. The proposed fuzzy controlled demand response energy management helped to reduce consumers billing 33.72 % compared to the billing without controlled scheme.