Stirling Council is expected to save £31 million by installing energy efficient lighting.

It is borrowing £9.87 million over four years using the Green Investment Bank’s (GIB) ‘Green Loan’, which offers a low, fixed-rate financial arrangement over a period of up to 30 years.

The council plans to install LEDs instead of traditional sodium bulbs in 12,000 streetlights as well as replace 4,000 lamp posts.

The project is expected to help cut power usage by 63% and reduce greenhouse gas emissions by 14,400 tonnes over the lifetime.

The energy saved annually would be equivalent to the total electricity consumed by more than 850 homes.

According to the GIB, the UK currently spends around £300 million a year to power its seven million streetlights, with less than one million lamps using low energy LEDs.

Robert Steenson, Stirling Council’s Director of Housing and Environment said: “We are investing in the LED streetlights both to save money and make sure that Stirling Council provides high-quality services that are as sustainable as possible.”

The local authorities of Glasgow and Southend-on-Sea have so far taking out a GIB Green Loan for LED rollouts.