San Jose, the third largest city in California, U.S. has started installing new LED streetlights throughout December, according to a report by San Jose Mercury News.

The San Jose Public Works Department has completed about half of the conversions for certain streets in the city by mid-December, said Walter Lin, energy manager for public works.

Despite delays in the LED streetlight retrofit project caused by rain, the workers averaged 150 LED streetlight upgrades per day for internal, smaller residential areas. The department aims to complete installing 1,500 smart LED lamps installations by the end of December that can be operated via wireless control.

The new smart LED streetlights can be dimmed 50% during twilight hours to help the city save energy costs, said Lin. The lights are also capable of sending notices to inform authorities of malfunctions.

Costs of the lighting materials and installation is about $500 per unit, while total costs for materials falls under $8 million. Installation costs are about $2.5 million

Cost of the materials and installation is about $500 per unit, Lin said, while the total cost for materials is just under $8 million. Installation costs are nearly $2.5 million.

Those costs will be offset by a combination of energy savings and rebates from Pacific Gas and Electric Company (PG&E). The lights installed in December will be receive net rebates of about $83 per conversion.

The city financed the streetlight project by borrowing money from Bank of America to pay for materials and installation.

San Jose authorities project $1 million in rebates for the four-month installation that includes streets in areas of Districts 7 and 8, said Lin. Additionally, the department expects conversions to save 5 million kilowatt hours or $660,000 annually after completing conversions.