The Obama administration has plans to invest $3.4 billion to modernize the energy grid.

The government will provide companies, utilities, manufacturers etc. with grants ranging between $400,000 and $200 million to help build smart energy grid across the nation.

The Department of Energy said the new move would provide American houses with clean, low-cost renewable energy.

The energy coordinator for the government, Carol Browner, said, “We have a very antiquated system that we need to upgrade.”

Speaking on the topic, Jared Bernstein, the economic adviser to VP Joe Biden, said that government’s recent move would provide work for tens of thousands of people.

The smart energy grid will reduce the problem of power outages.

The Obama administration’s recent move will help the nation harness the abundance of sunlight as well as wind energy, which will save billions of dollars for the country in future.