This paper presents an approach for scheduling customers’ demand response (DR) to support integrating photovoltaic (PV) generation into the distribution grid. The proposed approach helps the management of demand flexibilities by providing optimal control prices for groups of customers. The paper presents a bi-level programming model for the interactions between the distribution system operator (DSO) in the upper level, who seeks to minimize costs, and customers in the lower level, who reduce their electricity bills. A case study using real-world daily profiles of residential and commercial Chilean end-users on the IEEE-13 node test distribution feeder illustrates how the proposed approach can schedule DR.