A smart grid is an electrical power set-up that brings electricity to everyone that needs it and reports back to the utility on how much energy is used. It uses that data to charge you more for electricity used in peak hours and offsets that with discounts for energy use during low demand hours, forcing consumers to save energy. It also takes the strain off the electrical grid and makes it more efficient at supplying the energy needed. A smart grid has less environmental impact overall.

The funding Obama promised will help increase the liability, efficiency and security of the US electrical system under the American Recovery and Reinvestment Act.