Shoalhaven City Council is revamping the region's street lights by replacing bulbs with more energy efficient LED lights.
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In collaboration with Endeavour Energy, council will replace 4,200 of its 11,000 bulbs with LEDs, expected to save $235,000 on Shoalhaven's electricity bill.
Shoalhaven Mayor Amanda Findley said while Endeavour Energy owned and maintained the street lights council was responsible for the operating costs.
"Council is taking... advantage of grant funding by the NSW Department of Planning, Industry and Environment to assist council to make the energy-efficient switch to LED lighting." Cr Findley said.
"Once the upgrade is complete in mid-2020, 55 per cent of council's street lighting will be energy-efficient LEDs. This is estimated to save $235,000 annually.
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"It will take the region one step closer to achieving our greenhouse gas emissions target, saving approximately 1,313 tonnes of carbon dioxide emissions every year."
Endeavour Energy's general manager of customer and assets Ty Christopher said the new bulbs were easier to maintain and lasted longer.
"Shoalhaven City Council is one of nine local governments where Endeavour Energy is accelerating the rollout of LEDs," Mr Christopher said.
"Local ratepayers will benefit from reduced energy consumption, lower electricity bills for street lighting and decreased maintenance costs as the LEDs have a longer life and need less maintenance." Mr Christopher said.
Installation of the new LEDs is expected to start this month and will be completed by May 2020. Council said disruption to drivers and residents would be kept to a minimum.