System for communication, optimization and demand control for an appliance

A method for controlling a water heater comprising:

• creating a periodic water usage profile based on water usage and water temperature data a of the water heater using a profiling program of the water heater;
• wherein the water heater comprises a water tank;
• loading the periodic water usage profile to a control of the water heater,
• wherein the control of the water heater controls a heating element of the water heater;
• selecting a mode of demand, at the control of the water heater, for a certain amount of water within a particular temperature range that is used from the water heater;
• creating a learning program having an enablement option that updates water temperature, the periodic water usage profile, and the mode of demand for the water in the water heater;
• loading the updated water temperature, the updated periodic water usage profile, and the updated mode of demand for the water in the water heater to the control of the water heater;
• and
• automatically adjusting, by the control of the water heater, water heater temperature based on the updated water temperature, the updated periodic water usage profile, and the updated mode of demand for the water in the water heater,
• wherein the automatically adjusting of the water heater temperature comprises controlling the heating element of the water heater to meet the updated water temperature, the updated periodic water usage profile, and the updated mode of demand for the water in the water heater.