The smart grid revolution has benefited many sectors but the potential for design optimization among residential units has yet to be explored. Despite some researchers having negative perception of house design's association with the smart grid system, there is in fact potential for investigating design attribute optimisation aligned with the smart grid system. As electricity becomes a necessity of the 21st century society, residential dwellers are becoming more dependent on this indispensable source of energy. As such, this paper explains the development of a framework focusing on design optimization for residential units aligned to the smart grid system using the Fuzzy Delphi Method approach. It focuses on the significant smart grid components linked to the residential sector incorporating key design attributes for energy optimization purposes. The proposed framework denoted two main components of residential design optimization, depicted as indoor and outdoor parameters with its subsequent attributes further categorised into main and detailed components. Twelve design parameters were found to be substantial for the DOfSG development, intended to provide useful guide for aligning residential design towards the smart grid system in Malaysia.