It would have the illusion of getting dimmer or brighter like the sun shadows have when set better than skyrims default.
The majority of people wont notice unless they are staring at the lights one would hope. Too many lights and increases the chance someone will notice the moment they swap states and too few and it you may not get the desired effect. Light A turns on at 5PM and off at 6PM Light B turns on at 6Pm and off at 7PM, Light C turns on at 7pm and off at 8pm, Light D turn on at 8PM and off at 4am, Light C on at 4 am and off at 5, B on at 5am to 6am, A on at 6am off at 7am. Probably at least 4 lights to turn on and off in a series so you get the illusion it is the same light getting dimmer or brighter.
duplicate it and make that duplicate less bright and start an hour before and when the other ends and repeat until full daytime with no light.
You could add 1 light and set it for its minimum brightness and have it set to turn on when it is fully dark.