South Lakeland District Council said it hoped to save more than Â£64,000 and 1,285 tonnes of CO2 by switching to green energy.
It will install solar panels, insulate key council buildings and buy the rest of its energy from green suppliers.
It hopes businesses in the county will follow its lead.
Cllr Clare Feeney-Johnson, who is responsible for the environment and sustainability, said: "By focusing the council's efforts on these three key priorities the organisation can make a long-term commitment to not only energy savings but generating green energy.
"In the short term some of these green initiatives will cost more money but over time they will bring great savings and more importantly will bring huge environmental benefits across our district."
It's predicted that fully insulating council buildings such as South Lakeland House in Kendal, Ulverston Town Hall and Ferry Nab in Windermere will save the council Â£4,500 per year and cut 30 tonnes of CO2.
The council is committed to cut emissions by 25% by 2013.
A Cumbrian council has announced it is to generate its own energy from renewable sources as it looks to provide power for its buildings.