Dubbo Regional Council will spend about $3.5 million to upgrade the city's street lights.
Almost 6600 bulbs will be converted from energy-intensive lighting to smart-enabled LED lights.
Dubbo Regional mayor Ben Shields said he was excited that after the $3.5 million for the new lights was paid off, the improved lamps would save council $700,000 per year.
"The estimated cost to council is currently being finalised, however it is expected that these street light upgrades would have a payback period of five to six years from savings experienced with electricity usage reductions as a result of the newer technology, even without NSW government funding," he said.
"Once the payback period has been achieved ongoing savings of approximately $700,000 per annum would be realised."
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Essential Energy approached the NSW Government to fund the installation of smart-assisted LED lighting across NSW. But they're still waiting for a response.
Cr Shields said the lights would not only be energy efficient and more environmentally friendly, they would also be equipped with the latest technology.
"Other things can be added to these poles such as motion-detection technology, which will increase the brightness of the light when someone is close by so they will be at a lower dim when no one is in sight," he said.
"We can also use it to detect things such as car parking, right down to if council wanted to later on down the track add Wi-Fi. There's all sorts of things that can be put on these smart poles with the right technology in place."
Cr Shields said it was innovation like the lights that would continue to make Dubbo the leader of western NSW.
The Bulk Lamp Replacement will be undertaken as part of Essential Energy's regular maintenance program in November, after councillors voted in favour of the program at the May council meeting.
If the NSW government does decide to fund the replacement programs, Dubbo Regional Council will look at having its costs reimbursed.