Solar powered street lights cost comparison: Is it really more affordable than grid-powered lighting?
As cities and councils across Australia look for new ways to cut costs and reduce their carbon footprint, solar powered street light systems have emerged as a sustainable alternative to conventional grid-powered lighting. Putting aside the feel-good factor of clean green sustainable lighting, we find out if solar really is more cost-effective than grid-powered street lighting.
The first electric street light was installed in Los Angeles in 1876 using a carbon arc lamp developed by Russian electrical engineer Pavel Yablochkov[1]. Although, the technology has improved since then with the invention of incandescent globes and later, LED lighting, the basic idea hasn’t changed. Today, most modern street lights are still essentially a pole with a light attached and lots of wire connecting it to the electricity grid.
Solar-powered street lights on the other hand are relatively new, with the first commercially available model not hitting the shelves until 2008. They operate independently from the electricity grid, capturing energy free from the sun and storing it in a battery to power an energy efficient LED light at night.
Over the years the technology has matured, enabling solar lighting systems to perform just as capably as their gird-powered rivals. The main question nowadays is not which is better, but which is more cost effective?
To find out, we calculated the total life-time cost for a hypothetical public lighting project requiring 12 kilometres of street lighting. All of our costings included the initial up-front purchase price of the lights, planning and specification fees, installation costs and on-going operating costs calculated over 20 years including electricity charges, maintenance and repairs.
Grid-powered lighting costs were supplied by independent engineering consultants ACOR Rudds and compared with our own costings for an equivalent solar powered system.
Up-front Costs
The ACOR Rudds costing for 12 kilometres of grid-connected street lighting was $736,000 fully installed. The same stretch of road illuminated with solar powered street lights cost significantly less, coming in at $577,000[2] fully installed – a saving of $159,000.
One of the main advantages of solar is ease and speed of installation. Unlike conventional lighting systems, solar powered street light systems don’t require extensive trenching, wiring or connection to the electricity grid.
According to the ACOR Rudds analysis, total installation time for grid-connected lighting was 17 weeks including planning and specification, underground wiring, lighting installation and connection to the electricity grid. Actual installation times however can be much longer than this, sometimes taking as much as 18 months or more if there are significant delays.
In comparison, the Leadsun solar powered lights saved four weeks on connections alone, and another six weeks on wiring. “It’s a far simpler process with no permits or waiting for approvals,” said Leadsun’s head of Sales & Market Development, Kieran McGrane. “We do the design and then the lights are delivered to site and installed. It really is that simple.”
Time is money they say, and when it comes to street lighting it seems, this couldn’t be more true.
“The operating costs are in reality a lot better for solar, and are only going to get better”
On-going Operating Costs
As any asset manager will tell you, infrastructure costs aren’t just about the initial outlay. On-going operating costs over the life of the asset need to be factored in as well.
Over a 20-year period, the ACOR Rudds study found that the gird-powered lighting system would cost $294,000 in total, including $26,000 in electricity bills and $268,000 in maintenance and repairs. Solar was marginally more expensive, coming in at $314,000 all up, with slightly higher maintenance costs offsetting the savings made on electricity bills.
It should be noted though that the ACOR Rudds report was based on some fairly conservative assumptions that downplayed the benefits of solar. For example, the modelling assumed the battery and controller in the solar powered system would need to be replaced every 10 years. In practice, Leadsun’s patented dual Lithium LiFePO4 battery management system typically lasts around 15 years. “We have many clients whose lights are still shining bright 15 years on. This is 50% more than the modelling in the report and means the actual operating costs for solar are materially less”, said McGrane.
The report was also based on a very low electricity tariff which downplayed the cost savings from solar which is completely grid-free and therefore has no associated on-going electricity costs. “The operating costs are in reality a lot better for solar, and are only going to get better,” added McGrane. “This is because batteries are getting cheaper and lasting longer and energy prices are predicated to rise.”
More than Money
Of course, when making important public lighting infrastructure investments like this there are many considerations that need to be weighed up besides just the money. For Local Governments, the environment is another really important consideration. Street lighting is the single largest source of greenhouse gas emissions for local Councils in Australia, typically accounting for 20 to 30 per cent of total emissions[3]. With zero carbon emissions, solar powered street light systems are helping local governments to eliminate their emissions from street lights altogether and drastically reduce their overall emissions.
Energy security is another important challenge that solar is helping to tackle. Solar powered street light systems operate independently from the electricity grid, so they can continue to shine during blackouts and severe storms when the electricity grid shuts down. In cyclone and hurricane affected areas, solar street lights are lighting the way during times of crisis.
In the United States and increasingly in Australia, copper wire theft is another problem that solar is helping to solve. Some cities like Los Angeles are quite literally being stripped for parts, with copper wire ripped from the grid and sold for scrap, leaving streets and entire neighbourhoods in the dark. Solar powered street light systems however are grid-free. With no copper wire to steal, they effectively eliminate the copper wire theft problem altogether.
Solar powered street light system stacks up for Murrumbidgee Council
The Murrumbidgee Council in southern New South Wales (NSW) recently installed 39 Leadsun AE3 solar powered street lights in a residential development at Darling Point. The Council wanted a modern grid-free street lighting solution that was economical, and environmentally friendly.
Speaking to PV Magazine, Mayor of Murrumbidgee Council Ruth McRae said the solar powered lighting system is a prime example of how reliance on traditional energy sources can be reduced.
“With integrated battery systems, they continue to operate seamlessly even during power outages, providing constant lighting and security for residents,” McRae said.
“By adopting this new technology, we are moving forward in our ongoing commitment to create a more sustainable and connected community. Not only do these lights utilise renewable solar energy, but their design eliminates the need for traditional in-ground cabling, which reduces both installation costs and environmental impact.”
The winner is...
Many people assume that solar street lights cost more up-front but will save money in the long run. Incredibly, we found that solar powered street lights not only cost less overall, they are also significantly cheaper up-front too, costing as much as 21% less than grid-powered street lights. If financing costs had also been factored into our study, the cost savings for solar would have been even greater.
Overall, the solar powered system delivered a 13% saving over 20-years compared to an equivalent grid-powered lighting system. With all of the other added benefits solar affords, it turns out that it won’t just be the planet that thanks you for going grid-free, your finance department will too.
[1]William H. Workman, The City That Grew (1929) Mirror-Press, Los Angeles, p.
[2] Calculated using average USD to AUD exchange rate for 2022 from https://www.ofx.com/en-au/forex-news/historical-exchange-rates/yearly-average-rates/
[3] Street Lighting Strategy July, 2011 https://www.energyrating.gov.au/industry-information/publications/street-lighting-strategy states that street lighting is responsible for 30-60% of council electricity-related GHG emissions, however IPWEA SLSC have subsequently stated that with the roll out of LED street lights, it is now estimated to be 20-30%.
[4] Cost Comparison Report between Grid Streetlights and LEADSUN Solar Streetlights, 2021 ACOR Rudds Consultants Pty Ltd
[5] Off-grid solar street lighting delivers control of energy assets for local council, 2025 https://www.pv-magazine-australia.com/2025/05/16/off-grid-solar-street-lighting-delivers-control-of-energy-assets-for-local-council/
