Lincolnshire County Council claims that after spending over £164,000 on a new lighting system at its Lincoln offices it will be able save £28,000 a year.
The lights are sensitive to daylight and turn themselves off when a room is empty or there is no movement.
The council calls the new system an investment, as the total cost of the lights will be offset by the savings in over five years.
Funding for the new lights system came from Salix (£131,424), an independent energy-efficiency match funding pot, and the council contributed with £33,576.
The authority claims the new system is so efficient that they will also reduce their carbon emissions by 125 tonnes per year.
The County Council aims to reduce its carbon emissions by 20% by 2012.
Sustainability and Climate Change Team Leader Doug Robinson said: “The new lights are automatically controlled using a digital daylight-sensing controller with built-in passive infrared and microwave detection.
“This monitors daylight levels and adjusts the lighting dependant on the conditions, maximising energy efficiency.
“Movement and body heat in the space are monitored and light fittings switch on when a presence within the space is detected and switch off after a pre-set time when presence is not detected.”
Executive Member for Economic Development Eddy Poll said: “At Lincolnshire County Council, we have been looking carefully at our energy usage and carbon impacts and are keen to lead by example in limiting our impacts on the environment.
“This fantastic technology will really help us to do so. It is also another way for us to guarantee future cost-savings, which is particularly important during the current financial climate.”