Almost 5500 lights across Wollongong city are likely to be replaced with energy efficient globes.
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This will cost the council about $1.5 million but will save it $309,000 in street lighting charges annually.
Councillors will be asked to accept a funding proposal at Monday's council meeting.
Staff have recommended the council enter into an agreement with Endeavour Energy to change all available mercury vapour residential class street lights to energy efficient LED technology at a cost of $1,554,836.
The proposal offers council a fixed price subsidy and has an environmental benefit.
Wollongong Lord Mayor Gordon Bradbery said the benefits outweighed the costs.
"Council's power bill is more than $1 million a year so hopefully with the change in lights we can cut that down," he said.
"Then we can recoup some of the costs of the change over with the savings over the years.
"The new lights will also bring the standard of lighting, which is not adequate in some areas, up to an appropriate level of luminosity which will increase safety and security."
Each light will cost $283 to replace.
Cr Bradbery said the council was committed to protecting the environment and LED lighting was better for the environment than mercury vapour lights.
"Anything the council can do to reduce carbon emissions on a local level is welcomed," he said.
"We want the city to be more energy efficient and reduce the carbon footprint."
The council has already installed 3,440 LED lights when globes reached their end of their life or in new subdivisions.
Cr Bradbery said he hoped the council could tap into Office of Environment and Heritage grant funding to save money.
There are about 17,900 lights owned and maintained by council's preferred network provider Endeavour Energy.
The lights vary in type, age, intensity and energy efficiency depending on the historical time of installation and the site location throughout the local government area.
