A project to replace South Kesteven District Council-operated street lighting has already reduced energy consumption by 12 per cent.
SKDC Cabinet will decide next week whether to ask Full Council for £1m to complete the transition as part of a drive to meet its declared carbon reduction target of at least 30 per cent by 2030.
Deputy Leader of the Council, Cllr Ashley Baxter, said: "Upgrading street lights to more energy-efficient LED lamps is a no-brainer.
"I proposed this idea five years ago when I was an opposition councillor but it was rejected at the time. Since then, energy costs have rocketed and the council has paid the price.
"I am delighted that the council is getting serious about carbon reduction and, as a result, financial expenditure will also fall. Street lighting is the single largest area of electricity consumption for the district council and accounts for nearly five per cent of the council's total carbon emissions."
By upgrading the existing units to dimmable LED bulbs, the energy reduction achieved in the latest available month across the whole stock of lights was 12 per cent.
Due to the recent energy price increases, the energy saving has not been met with a comparable cost reduction.
Cabinet could also ask the Council to consider dimming the lights for specific night-time periods to further reduce energy costs.
However, annual carbon savings are modelled in a report to next week's Cabinet meeting on how the project which will contribute towards the Council's carbon reduction target.