
Streetlights are a basic example of public goods, which are non-excludable and non-rivalrous. This means that the producer cannot prevent non-payers from consuming the good, and the consumption by one person does not reduce the amount available to others. This creates a challenge for governments, as private companies typically lack the incentive to produce streetlights. As a result, governments often take on the responsibility of installing and maintaining streetlights. In the United States, there is no comprehensive list publicly available that details which entity maintains each streetlight. However, it is generally understood that if a state owns the street that is illuminated by a streetlight, the state is responsible for its installation, maintenance, and associated power bill. Similarly, in South Florida, cities, counties, and other government entities purchase traffic light bulbs but then maintain ownership and handle maintenance while paying energy companies for their usage.
| Characteristics | Values |
|---|---|
| Who maintains streetlights? | It depends on the location. In the US, if the state owns the street, it installs and maintains the streetlights, including paying the power bill. In other cases, streetlights can be owned and maintained by the electric company or by government entities or homeowners associations (HOAs). |
| Who pays for streetlights? | The entity that owns the streetlight is charged for its energy use. |
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What You'll Learn
- In the US, the government or municipality owns, installs, and maintains streetlights
- Streetlights are considered public goods, so governments are usually in charge of their maintenance
- HOAs can pay for upgraded lighting in a housing plan
- Streetlights are metered and billed based on energy usage
- Streetlights have become more energy-efficient with the use of LEDs

In the US, the government or municipality owns, installs, and maintains streetlights
Streetlights are a basic example of public goods, which are non-excludable and non-rival. This means that the producer cannot prevent those who do not pay from consuming, and the consumption of one person cannot prevent another's consumption. This becomes a problem for governments because no private company would have the incentive to produce streetlights. Hence, in the US, the government or municipality usually owns, installs, and maintains streetlights.
In the US, if the state owns the street that is lit up by the light, the state installs and maintains it, including paying the monthly power bill. This is also the case for cities. For example, in South Florida, cities, counties, and other government entities buy traffic light bulbs from Florida Power and Light (FPL) but then own and maintain the lights themselves while paying FPL for the energy use. Streetlights can also be bought from FPL by government entities or homeowners associations, or they can be owned and maintained by FPL.
In recent years, US municipalities have been switching to light-emitting diodes (LEDs) to replace high-pressure mercury (HPM), metal halide (MH), and high-pressure sodium (HPS) luminaires. LEDs can be installed as part of a centrally managed system with further energy-saving controls, such as part-night lighting and dimming. While the upfront costs of installing LED fixtures are significant, municipalities can expect to make up for it through reductions in electricity and maintenance costs. For example, in 2007, Ann Arbor, Michigan, announced plans to become the first US city to convert all of its downtown streetlights to LED technology. The city replaced 120-watt bulbs, which lasted only two years, with 56-watt LEDs that would last a decade, and expected to reduce its energy costs. As of January 2011, the city had switched 1,400 of its 7,000 streetlight fixtures to LEDs, saving approximately $200,000, including reduced maintenance costs.
Historically, mercury vapor streetlights started to be used more widely in the US after 1950 due to their cost-efficiency. During the OPEC oil embargo, Mayor Richard J. Daley announced a plan to make Chicago the first large US city to have sodium vapor lamps on all residential streets, replacing 85,000 mercury vapor streetlights. In 2009, PSE&G in New Jersey became the first utility in the US to use induction fluorescent lamps to replace mercury vapor lamps, in 220 municipalities. The induction lamps were expected to last 100,000 hours before requiring maintenance and consume 30 to 40 percent less electricity, thereby saving an estimated $1 million annually.
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Streetlights are considered public goods, so governments are usually in charge of their maintenance
Streetlights are considered public goods, as they are non-excludable and non-rivalrous. This means that the producer cannot prevent those who do not pay from consuming, and the consumption of one person does not hinder another's consumption. As a result, streetlights fall under the purview of the government, which is typically responsible for their installation and maintenance.
In the United States, for example, streetlights are generally owned and maintained by government entities, including cities, counties, and states. These entities may purchase streetlight bulbs from electric companies like Florida Power and Light (FPL) and pay for their energy usage. However, there is no comprehensive public list of which specific lights are maintained by which entity, and the information is not easily accessible.
The maintenance and operation of streetlights can be a significant expense for cities. In recent years, there has been a push to adopt more energy-efficient lighting technologies, such as light-emitting diodes (LEDs), to reduce costs. LEDs can be part of a centrally managed system, allowing for further energy-saving controls like part-night lighting and dimming. While the initial installation costs of LEDs are high, municipalities can expect to recover their investment through reduced electricity and maintenance expenses over time.
Historically, various types of streetlights have been used, including incandescent lamps, mercury vapor lamps, sodium vapor lamps, and high-pressure sodium (HPS) luminaires. The choice of lighting technology has often been influenced by factors such as cost, energy efficiency, and light quality. For example, during the OPEC oil embargo, Chicago transitioned to sodium vapor lamps to reduce operating costs, despite concerns about the eerie illumination they produced. Similarly, in 2009, PSE&G in New Jersey began replacing mercury vapor lamps with induction fluorescent lamps, which were expected to last longer and consume less electricity.
In summary, streetlights are considered public goods, and their maintenance is typically the responsibility of government entities. The transition to more energy-efficient lighting technologies, such as LEDs, is driven by the need to reduce costs and improve energy efficiency. While streetlight maintenance can be a financial burden for cities, the adoption of new technologies and innovative solutions helps mitigate these challenges.
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HOAs can pay for upgraded lighting in a housing plan
Typically, the government or the state is responsible for installing and maintaining streetlights. However, in the case of upgraded lighting in a housing plan, the costs may be shared between the local municipality and the HOA. If the housing plan's developer specified upgraded lighting when the neighbourhood was built, the local municipality will usually cover the cost of standard streetlights, while the HOA pays the extra costs for the upgraded lighting.
Homeowners' Associations (HOAs) have rules and regulations that homeowners must follow, including those regarding renovation projects and upgrades to their homes. These rules vary from community to community and are outlined in the CC&Rs (covenants, conditions & restrictions). Before making any changes, homeowners should consult the CC&Rs to understand the specific approvals required. In the case of upgraded lighting, some HOAs may have restrictions related to light trespass, which occurs when light from one property spills over onto another.
Upgraded lighting can be a valuable addition to a home, especially when it comes to selling. With many people now working from home, buyers are considering how lighting changes throughout the day. Optimising natural light and making small adjustments, such as switching to brighter bulbs or adding a statement lamp, can enhance the ambiance and productivity of a space.
When planning an upgrade, it is essential to engage an expert to help navigate the application process and provide detailed information about the project. The HOA will inspect the project to ensure it complies with the community's rules and standards of quality. Fees paid by homeowners to the HOA also contribute to the cost of upkeep and maintenance of common areas, exteriors, and shared structures.
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Streetlights are metered and billed based on energy usage
Streetlights are usually maintained by the local municipality or city. In the US, if the state owns the street, it is responsible for the lighting, including the monthly power bill.
Streetlights are indeed metered and billed based on energy usage. In the US, the Public Lighting Tariff is a flat rate based on the number and power rating of the lamps. However, some streetlights are metered, and there are customer-owned metered streetlight services. These are billed at a per-kWh rate.
Streetlights can use a lot of energy, with a high-pressure sodium street light drawing up to 1000 watts, while a light from the 1900s might have needed 320 watts. Upgrading to more energy-efficient lighting, such as LED or induction lights, can result in significant savings on energy bills.
There are various ways to calculate energy usage and billing for streetlights. In some cases, local councils or trunk road management companies may keep track of the number and type of lights, the hours they are on, and calculate the rough electricity usage. This can lead to estimated bills, which may increase year on year. In other cases, a map-based system can be used, with each item on the highway connected to the power grid having an Elexon Code number related to its energy usage. The database can then be used to calculate energy use and automatically amend bills.
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Streetlights have become more energy-efficient with the use of LEDs
Streetlights are generally installed and maintained by the state, including the monthly power bill. However, the responsibility for streetlights in a city is often shared between the city and the electric company.
Streetlights have evolved from gaslights in the 19th century to today's electric lights, with a recent shift towards LED lights. LEDs are today's most energy-efficient and rapidly evolving lighting technology. They are ideal for streetlights because they emit light in a specific direction, reducing the need for reflectors and diffusers. LEDs also emit very little heat, in contrast to incandescent bulbs, which release 90% of their energy as heat.
LED streetlights have a range of benefits, including energy efficiency, cost savings, and longevity. They use significantly less energy, resulting in reduced electricity costs for local governments. For example, LED streetlights in Boca Raton, Florida, are expected to use 40% less energy than high-pressure sodium lamps. This is equivalent to taking 234 cars off the road in terms of carbon emissions savings. Additionally, LED bulbs can last up to 25 times longer than incandescent bulbs, reducing the need for frequent replacements.
However, there are concerns about the potential negative impacts of LED streetlights on human health, wildlife, and the environment. Researchers have found that the increased brightness from LED streetlights can disrupt sleep patterns in humans, turtles, birds, fish, and insects. The American Medical Association (AMA) warned about the health risks posed by the transition to LED streetlights, particularly the disruption of circadian sleep rhythms. Additionally, LED streetlights can contribute to light pollution, with skyglow increasing by 10% annually, posing a threat to nocturnal animals such as migrating birds and moth caterpillars.
To mitigate these concerns, some cities are opting for amber-colored LEDs, which emit less blue light. The AMA and other organizations recommend capping the color temperature of LED streetlights to reduce their impact on human health and the environment.
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Frequently asked questions
The government or local municipality pays for streetlights.
Streetlights are maintained by the government or local municipality. In some cases, the electric company may maintain them if they have been bought from them.
Streetlights are installed by the government or local municipality.
The entity that owns the streetlight, be it the city, county, or HOA, is responsible for paying for repairs.
Since 2016, streetlights have been metered, similar to how energy usage is measured for a house.











































