In this paper, a demand side management control (DSM) acting on the load profile for an isolated hybrid photovoltaic/diesel/battery system for residential application was investigated. This control is a new strategy that compensates the global power flow of a distributed generation system. In fact, using the DSM strategy, the renewable energy can be used effectively to satisfy the demand and reduce the size of the system components. It leads to satisfy customers' continuous requirements to minimize the loss of power supply propability (LPSP), to extend the battery life time minimizing the storage system charge cycle, and to reduce fuel consumption and CO2 emission together with the diesel generator operation rate (DGOR). Consequently, the DSM strategy is implemented to ensure the minimum system cost. The DSM algorithm relies on the customer's energy consumption record, the instantaneous available PV energy and the state of charge (SOC) of the battery storage system. This could be achieved through switching between two action modes on the consumption profile: time shifting load mode, amplitude modulation load mode. To prove the effectiveness of the proposed control strategy, two scenarios were investigated. The first one describes the system's simulation for two typical days. The second scenario is performed using annual profiles of photovoltaic and load powers. To highlight the benefits of the proposed strategy for the residential hybrid system applications under various conditions, a comparative study between the power management strategies without and with DSM was presented.