The Environment and Infrastructure Committee has agreed to formulate a detailed business case to look into how they best manage the 19,000 street lights, 1157 illuminated road signs and 30 traffic light arrangements.
Over half the cost of running these lights comes from running the traditional, low and high pressure sodium lamps. Lights using new technology not only save money because they use much less power but also have a longer life and therefore need changed less often.
Councillor Gordon Edgar, Executive Member for Roads and Infrastructure, welcomed the development of a detailed business case.
He said: "Several other councils are taking forward investment in this new technology and I welcome the progress the street lighting section at the Council is making to develop plans to invest in our street lighting asset in the Borders through the use of more technologically advanced lighting.
"It is important that the Council investigates alternative ways of providing its services and this 'spend to save' project shows benefits through reduced energy, routine maintenance costs, and future carbon taxation which, when set against the cost of investment, demonstrates that the investment should be paid back within eight years."