Warrnambool City Council will install solar panels at four of its buildings.
Councillors voted on Monday night to award the $378,235 tender to Gippsland Solar Pty Ltd (RACV Solar).
Solar panels will be installed at AquaZone, Archie Graham, the Civic Centre and the Warrnambool Art Gallery.
Councillor Ben Blain spoke in support of the motion.
"It's exciting when council is looking at and taking action on items that will preserve our environment," Cr Blain said.
"It's about more than dollars and sense - it's about protecting the environment."
Cr Blain said it was another step towards the council's goal of becoming carbon neutral by 2040.
Cr Debbit Arnott said she also supported the installation of the panels.
"It's more than about saving dollars, it's also about addressing climate change and it does work hand in hand with our 2040 plan," she said.
Cr Arnott said she was pleased the council was expected to have a return on its investment within seven years. "Business cases were prepared for each building averaging a return on investment of around 7 years," councillors were advised in a report on the proposal.
"In addition, structural reports have confirmed the structural adequacy of each building to safely support the proposed solar panel installation."
It further stated electricity was the main source of the council's carbon emissions.
An internal working group has been created to oversee delivery of the project.
The project will be funded as part of the council's energy saving initiatives budget.
The panels are expected to be installed at the four council buildings by April next year.
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