Grid-friendly smart households are not only taking residents " needs into account, but also to meet the reliable and stable operation of power grids, the power side and the user side are closely linked with each other to create a coherent electricity environment. Based on the analysis we built an intelligent power management system for optimization of smart household appliances, and explained the various parts of the system which play a positive part for grid. With grid and battery as the power supply and the aim to reduce electricity costs and the purposes to show positive effects peak load shifting on power system, the established real-time optimal control model for electricity based on the peak-Valley electricity price and users’ characteristics and calculation and analysis of a case study of Shanghai residents, the satisfactory results were obtained.