President Obama this week announced grant awards for 100 smart grid companies to improve energy efficiency of the electric grid using smart meters and information technology.

A trade group representing smart grid companies, the Demand Response and Smart Grid Coalition (DRSG), said it "applauds" the announcement by the Obama administration.

The total amount of funds to be disbursed by the federal government is $3.4 billion, but combined with the dollars pledged by recipients with matching funding, the projects represent more than $8 billion of investment in the smart grid.

"These grants are a significant event in the development of the smart grid," said Dan Delurey, director of DRSG and chairman of the Smart Green Grid Initiative. "Not only is the size of the total investment significant but also the diversity of the projects that will receive an award."

The grants include investment in transmission and distribution systems but also smart thermostats and home information displays to help consumers reduce their own energy consumption.

One way homeowners are cutting their electricity costs is with energy efficient light bulbs such as compact fluorescent light bulbs or CFL.