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Energy audit is a method of knowing the energy used in a particular area and to recognize the area where energy consumption can be minimized. Energy audit involves many tasks and these can be carried out depending of audited capability and the types of audit methods. It started with assessment the old data of energy consumption because these data is vital to know the patterns of energy used in a particular area. Then by using different techniques, energy consumption can be reduced. Whereas; it is difficult to manage the different operating time of the loads by older methods particularly when solar energy system is involved reason being the solar energy system cannot provide power all the time. Consequently when grid power and solar energy systems are involved, there should be intelligent control to offer the energy efficacy and to lessen the total power consumption. In this paper, Fuzzy based auditing methodology is considered to provide the excellent results for residential buildings. The energy utilization of different electrical appliances in operation and their operating parameters like temperature, humidity, efficiency and energy consumption etc. are taken into consideration for the analysis. The objective of this paper is to use a fuzzy logic controller for the energy consumption reduction analysis in Kasganj city of Uttar Pradesh state in India, by employing the utilization hours of the solar powered system and the required load demand using the time for which the different appliances are in operation. This analysis has been started with the survey of different buildings in order to get the information on present energy utilization. The energy audit presented in this work only concentrated in the 5 buildings in the Kasganj in order to take the real life conditions. Whereas, the fuzzy controller can set a threshold of power from grid and solar energy system that could not be exceeded as well as controlling the working hours of different appliances, otherwise it will affect the energy efficacy of the smart buildings. Results of the study shows, the percentage saving in money for each building using graphical analysis. The overall 69% cost reduction is achieved with the 5 buildings when solar energy system and grid power are involved using the proposed technique. This would make the transition towards sustainable development smoother and faster and this technique could be reflected on the real life situations.