Focusing on the electricity user group feature, a residential electricity consumption analysis method based on geographic regularized matrix factorization in smart grid was proposed to explore the characteristics of electricity users and provide decision support for personalized better power dispatching. In the proposed algorithm, customers were firstly mapped into a hidden feature space, which could represent the characteristics of users' electricity behavior, and then k-means clustering algorithm was employed to segment customers in the hidden feature space. In particular, geographic information was innovatively introduced as a regularization factor of matrix factorization, which made the hidden feature space not only meet the orthogonal characteristics of user groups, but also make the geographically close users mapping close in hidden feature space, consistent with the real physical space. In order to verify the effectiveness of the proposed algorithm, it was applied to the real residential data analysis and mining task of smart grid application in Sino-Singapore Tianjin Eco-City (SSTEC). The experimental results show that compared to the baseline algorithms including Vector Space Model (VSM) and Nonnegative Matrix Factorization (NMF) algorithm, the proposed algorithm can obtain better clustering results of user segmentation and dig out certain power modes of different user groups, and also help to improve the level of management and service of smart grid.