With the advancement in the technology, deployment of sensors in the industrial or public building is increasing rapidly. The basic aim is to obtain the data from the environment and decision making to the energy saving. The activities caused by the human results the undergoing negative change in the environment. There are many techniques available for decision making and consider the environmental factors solely which cause the energy consumption. However, user’s preferences are not adapted by the systems, but at energy consumption optimization, these systems are very successful. The end-users use the system which considers the factors and their wellbeing are get affected. The distributed generation is incorporated by the Smart Small Grid (SSG), communication network and the sensors for the more reliable, flexible and efficient grid. The energy saving system is presented in this paper which also adapts to the inhabitants preferences apart from environmental conditions consideration. The architecture of Multi-Agent System (MAS) and the agents are utilized for negotiation process performance between the users comfort preferences and optimization degree that according to these preferences, achievement of system is done. The energy consumption of 40% is obtained and in the inhabitants' behavior pattern, the algorithm was specialized. The 16.89% of reduction is obtained by the existing system and it was focused to obtain the agreement between the system and users for user preference satisfaction and the energy optimization is also performed at the same time.