LED Economics
Why are we so interested in LED? Well, compared to traditional incandescent bulbs, LED bulbs use 60% to 80% less electricity to generate light, and therefore cost less for electricity for the same amount of light.
A light fixture can continue to emit the same level of light you have come to enjoy, but uses 60-80% electricity to do so with LED.
Why is LED so much better? Frankly, the technology focuses on helping the electricity to make light, and only light (no side effects or other factors). Unlike CFLs which contain traces of mercury and are slow to illuminate, LEDs do not contain hazardous material and immediately “turn on” and produce light. Bottom line, LEDs are extremely efficient and produce great light, and the prices have come down significantly in recent years.
There’s no sense “waiting for the next innovation”. The waste has been largely eliminated from the system, manufacturing innovations have occurred and prices have fallen. It’s time to change.
LED Savings Add Up – Electric Consumption
According to the US Department of Energy (energy.gov), an average American household contains 40-50 light bulbs.
Don’t scoff…we’ve found that most of the homes in our community contain 20% more!
Reports issued by the DOE estimated that converting a home’s lighting can save the average American household over $ 200 per year (source: energy.gov). This estimate is based on lights being on at home on average 3 hours per day per year.
At LED Brighter Communities, we consider these “pre-COVID” numbers. With the change in our lifestyles brought on by the Pandemic, including work-at-home and school-at-home strategies, we’re finding some households where lights are now in use 2x – 3x longer, significantly increasing a household’s electric consumption for light!
Check the chart…. a modest household has the opportunity to save over $ 3000 using LED bulbs over the lifetime of the bulbs, and a larger household nearly $ 7000 ! Business savings are usually considerably higher. What reason could there possibly be not to spend a few hours and convert your home or business to LED???
LEDs and Replacement Costs
Compared to traditional incandescent bulbs, LED bulbs last up to 20 times longer. This saves money, and significantly reduces the time and effort we’ll use buy new bulbs, managing a bulb inventory, and replacing burnt-out bulbs.
The life of an LED bulb is so long that an LED bulb installed when a baby is born is likely to last past college!
Having to deal with burnt-out bulbs, like so many things, is becoming thing of the past.
Chart of Cost Comparison between LEDs, CFLs and Incandescent Bulbs
| LED | CFL | Incandescent | |
| Light bulb projected lifespan | 25,000 hours | 10,000 hours | 1,200 hours |
| Watts per bulb (equiv. 60 watts) | 8.5 | 14 | 60 |
| Cost per bulb | $3 | $2 | $1 |
| KWh of electricity used over 25,000 hours | 212.5 | 350 | 1500 |
| Cost of electricity (@ 0.10 per KWh) | $21.25 | $35 | $150 |
| Bulbs needed for 25,000 hours of use | 1 | 2.5 | 21 |
| Equivalent 25,000 hours bulb expense | $5 | $5 | $21 |
| Total cost for 25,000 hours | $24.25 | $40 | $171 |
| Energy Savings over 25,000 hours, assuming 25 bulbs per household | |||
| Total cost for 25 bulbs | $606.25 | $1000 | $4275 |
| Savings by switching from incandescent bulbs – 25 bulbs (1 bdr apt)* | $3,668.75 | $3,275 | Not Applicable |
| Savings by switching from incandescent bulbs – 50 bulbs (family home)* | $7,337.50 | $6,550 | NotApplicable |
* 25,000 hours of use (3 hours/day for 22 years, or 12 hours per day over nearly 6 years)
Source: https://learn.eartheasy.com/guides/led-light-bulbs-comparison-charts/
- Cost of electricity will vary. The figures used above are for comparison only, and are not exact. Residential energy costs among the various states range from 26.17 cents (Hawaii) to 7.4 cents (Washington) per KWh.
- The cost per bulb for LEDs may vary. We used the figure of $3.00 (for a 60 watt equivalent LED bulb) as an average among lighting retailers.
- Estimates of bulb lifespan are projected, since it would take about 6 years of continuous lighting to test. Some manufacturers claim the new LED bulbs will last up to 25 years under normal household use.
- CFLs take considerable time to “warm up”/produce light. They are also traditionally not able to be dimmed. Light spectrums may also be limited.
- Bulb breakage and bulb replacement costs have not been factored into this comparison chart. Incandescent bulbs and CFL bulbs are more easily broken than LEDs, which increases their cost of use.
- Most LEDs come with a minimum 2-year guarantee. Any defective LED bulb will usually fail within this time.
The Additional Air Conditioning Factor
While its impossible to quantify, converting to LED can significantly reduce the amount of electricity you use to cool your house as well. This is because LED light bulbs, unlike traditional bulbs do not generate heat.
Don’t laugh…the savings can be significant! We know of one manufacturer that converted their offices to LED in the Fall, then wondered why their air conditioning system was over-cooling the offices in the Spring. Upon investigation, they realized that the “problem” wasn’t with the air system. Rather, the lighting systems were no longer pouring heat into the rooms (because they had been converted to LED). Adjustments were made to reduce the cold airflow, significantly reducing cooling costs.
We told this story to a resident that recalled a similar story. For years, they only used the dining room during the holidays, as the room was hot and stuffy other times of the year. The problem wasn’t the central air system, it was the many bulbs in the chandelier! Once the heat-producing incandescent bulbs were converted to LED (which produce no heat), the room was comfortable for celebrations through-out the year!
Did you just tell yourself that the heat generated during the colder months evens out the deal? We did too!! Turns out that there is a lot more electricity needed to generate cold air (as much heat is gas or heat pump, especially in certain geographies). It’s time to change to LED!