The document discusses the smart grid and how solar energy fits within it. It begins by describing the current electric grid as one-directional, centralized energy production with few communication capabilities. The smart grid will feature two-way communication between energy producers and consumers, optimization of distributed renewable resources like solar, and allowing consumers to sell energy back to the grid. It will provide consumers with real-time energy use information to help manage demand. The smart grid aims to make the energy system more efficient, reliable and sustainable.