The local government area is part of an initiative being rolled out across 41 local government areas after an 18-month pilot program in Sydney and the Central Coast revealed LED lights could cut electricity bills by up to 70 per cent.

Ausgrid will convert street lights to LED as each globe needs to be replaced starting immediately.

Maitland council had been expected to spend $2.3 million on lighting this financial year – $400,000 more than in 2012-13.

But there is the potential to save $1.6 million, which would reduce the cost of electricity during the 2013-14 financial year to $690,000. 

Mayor of Maitland, Cr Peter Blackmore, said street lights represented the largest portion of the council’s electricity use and the measure was a welcomed first step to curbing energy costs.

“While it will take some time to see the full benefit, at least there is a commitment that this will happen and over time it will make an impact on our electricity costs,” he said.

“The costs eventually come back to the ratepayer, so if we can save money on lighting, that means we have funds that can be directed elsewhere.”

The council does not have any LED lighting at present, because up until now its benefits had not been proven. Most of the bulbs used are compact fluorescent. 

NSW Energy Minister Chris Hartcher said the life span of LED lighting was more than 20 years, which would also reduce council’s maintenance costs. 

He said the street lights in most residential areas used between 46 and 95 watt globes, which needed regular replacement. 

LED lights use about 29 watts. 

“When a standard light on a suburban street fails and cannot be fixed, it will now be replaced with a super efficient LED,” Mr Hartcher said.

Ausgrid owns and maintains 250,000 street lights throughout 41 LGAs. 

Council met with Ausgrid last week to learn more about the roll-out.

Sylvania Lighting, a Central Coast-based company, is expected to supply about 10,000 LED lights a year.