Increased distributed photovoltaic (PV) generation leads to an increase in voltages and unwarranted backflows into the grid. This paper investigates Demand Response (DR) with Electric Water Heaters (EWHs) as a way to increase the PV hosting capacity of a low-voltage feeder. A control strategy relying only on power measurements at the transformer is proposed. Flexible loads are optimally dispatched considering energy acquisition costs, a PV shedding penalty, and power and energy constraints. Furthermore, grouping of loads and PV plants is investigated, and switching penalties are used to reduce the unnecessary switching of loads. It is shown that this strategy can substantially increase the PV hosting capacity of a Low-Voltage (LV) feeder, even when only basic controllability is available.