In this paper, Demand Side Management scheme in a smart grid environment is proposed as a feature of reducing the peak demand for residential users and maximizing the profit for the utility. A smart grid scenario is considered for detailed analysis. Non-cooperative game theory approaches are generalized in this methodology for solving two dynamic conditions such as reducing peak demand and maximize the utility profit with respect to the users comfort. In this work a new strategy is developed among the various users for scheduling of appliances autonomously. Extensive simulations are carried out using actual load profiles and obtained results demonstrates reduction in Peak to average ratio. In addition the proposed system is analyzed by considering the changes in climatic conditions of summer and winter for a particular region. © 2016 Penerbit UTM Press. All rights reserved.