In the smart grid infrastructure based power systems, it is necessary to consider the demand side management to enhance the energy reduction and system control. In many countries the resources are very less so the available resources have to be used in an efficient manner without any loss. The total loss cannot be avoided but it can be reduced. In the proposed system, the Particle Swarm Optimization (PSO) technique is used to distribute the power in the smart grid. Here, the grids are arranged in such a way that the losses in it are reduced. The load connected to the grid is rearranged according to their use. It uses a new and stochastic scheduling technique to handle the uncertainties in the power system. Solar and wind power are taken in account for twenty four hours and the values are given to the PSO algorithm. The experiment was conducted by MATLAB and the results show that the efficiency level of wind and solar power systems was increased by an appreciable level. The proposed technique is compared with the normal system without using Demand Side Management (DSM) and it shows that the proposed system gives better results than the existing systems.