Abstract: The rapid development of demand side photovoltaic（PV） has brought new challenges to power system operation, whereas the participation of demand response can play a positive role in saving users’ costs and improving economy and reliability of power grid operation. First of all, cost model associated with the system net load was proposed based on the distributed PV policies of China. This model can avoid new peak load in the model of peak-valley price as users tend to consume electricity with low price. Secondly, the demand side response model of user group with PV was proposed based on the game theory, and the uniqueness of Nash equilibrium was also proved. The process for solving the Nash equilibrium strategy is actually the process of seeking users’ optimal electricity arrangements. The solving process can be equivalent to a bi-level optimization model, and method and procedure were proposed based on the differential evolution algorithm. Finally, via a practical example, the effectiveness of the model was verified in terms of saving users’ costs, and optimizing system load characteristic, etc.