System and method for grid load-up dual set point. The invention provides a method of operating a water heater having a tank configured to store water. The method includes heating, via a first heating element, a first portion of the water to a first temperature set point. The method also includes heating, via a second heating element, a second portion of the water to a second temperature set point, the second temperature set point being greater than the first temperature set point. The method additionally includes receiving a load-up signal from a grid controller, and heating, via the first heating element, the first portion of the water to the second temperature set point upon receiving the load-up signal.