Appliances scheduling and direct load control are major tools of Demand Side Management (DSM); however, in many scenarios, these tools come to threshold for effective use due to certain limitations. Prosumers are those energy consumers who also produce energy and can share it with grid or other users. Demand-supply gap can be smartly minimized by energy sharing and management with integration of storage system at end users in smart grid environment. In this paper, prosumer based energy sharing and management model with integration of storage system is presented. MATLAB simulations have been performed for validation of the proposed model. Results show that if users are equipped with storage system then demand-supply gap can be reduced remarkably.