Screw one lantern bracket into each of your fence posts, 1 foot to 2 feet below the top edge of your fence, depending on its height. For very high privacy fences, screw the brackets in at eye level. These brackets are often decorative and available at hardware stores.
Place wooden boards across the brackets, creating shelves all around the interior of your fence. You can get boards precut to size at your local hardware store at no extra cost.
Nail wooden molding 4 inches wide and 1/4 inch thick to the front edge of the wooden boards with a nail gun. This creates a decorative lip that holds the bottles in place.
Screw the plastic cord light holders from your cord light kit (they almost always come in kits) into your fence about 4 inches above the wooden boards. Space the holders about 18 inches apart.
Press cord lights into the holders all around the interior of your fence. Cord lights are similar to twinkle lights, except the lights are encased in a tube of clear, flexible plastic. They're meant for outdoor use.
Fill as many old bottles as you can find with pretty and translucent items. Glass nuggets for flower vases, small silk flowers on vines, translucent shells or even strips of colored paper work well.
Cork each bottle tightly with a bottle cork. Set the bottles close together on the shelving around your fence. During the day, the decorations within provide pleasant scenery. At night, turn on the lights so the decorations glow.