This paper presents a proposed strategy for optimal reconfiguration of distribution networks with photovoltaic (PV) systems using signals from smart meters and earth fault indicator to identify the faulty cable. Simulation studies are performed to investigate all possible scenarios for system restoration using the DIgSILENT PowerFactory software and its DPL programming language. The objective is to determine the lowest cost reconfiguration scenario; considering active power losses for the new reconfiguration, load-loss during reconfiguration, PV disconnection during reconfiguration and reconfiguration switching. The Mixed Integer Linear Programing (MILP) algorithm available in MATLAB is employed for determining the minimum cost reconfiguration scenario. The latest collected load measurements from smart meters are used, and the optimal reconfiguration scenario considering load variation is proposed. If the methodology cannot find a scenario that maintains technical constraints, load reduction is suggested. The proposed strategy is simulated on the IEEE 37-node test feeder and a part of the specific district in south Cairo region consisting of 158 nodes.