What is the Smart Grid?
In general terms, the smart grid is the modernization of today’s electricity grid, with improved technology to help save energy, reduce your electricity bills, and decrease brownouts and blackouts. The smart grid features two-way communication—between you and the utility company—so that you can see how much electricity you’re using, when you’re using it, and how much it costs.
One of the major components of the smart grid is demand response, meaning a utility will work to decrease electricity demand during peak hours. Utilities will offer lower prices for using electricity during off-hours when demand for electricity is low.