The first help for America’s aging electricity grid is on the way.

The federal government announced $3.4 billion in funding to help move the country from its aging electricity grid toward a “smart grid,” NewYorkTimes.com reported today. Utilities are contributing $4.7 billion in matching funds, bringing the total spending to $8.1 billion.

The money will go toward deploying smart meters and improving technology in substations, transformers and other parts of the grid. In total, there will be approximately 100 smart-grid projects, with at least one in every state except Alaska.

Experts, according to CNNMoney.com, have long said the grid, much of which was built in the early 1900s, must be updated in order to handle the extra electricity loads from sources such as wind and solar power.

Approximately 18 million smart meters will go to American homes as part of the plan, CNNMoney.com reported, covering 13 percent of the homes in the country. The meters will allow more effective communication with utilities and appliances and allow consumers to better manage their electricity consumption.

The Obama administration cited an analysis by the Electric Power Research Institute that said a smart grid could cut electricity use by more than 4 percent by 2030.

In addition to smart meters, more than 1 million consumers will get in-home displays to provide real-time information about their electricity usage, Cnet.com reported today.