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The Economics of LED lighting

So you are considering making the switch to LED lighting because you have heard these lights can help you control that electricity bill. A quick Google search will confirm your thinking. LED lighting is a cheaper option for your electricity bill. However there is one sticking point the upfront price of the light.

Stylish home interior with LED lights and outdoor table

Is LED lighting really cheaper?

The big question is will switching to LED work out cheaper when including the cost of the light bulb?


The short answer is yes. For a fair head to head comparison we need to compare the up front cost of the light bulb and the cost to power it over the lifetime of the light for both LED and incandescent options.

stylish edison led light bulbs

LED Lighting's high efficiency is the key

First off pricing. Incandescent light bulbs are the cheaper option. Whilst incandescent light bulbs are much cheaper to buy than LED lighting, the upfront cost saving hides a dark secret when it comes to efficiency.


When it comes to powering the lights Incandescent lights burn 90% more electricity than LED lighting options. The reason incandescent light bulbs generate light is through heating a wire filament to the point it glows and casts off light, therefore the majority of electricity passed through the light is as heat. This means that you are quite literally burning money through out dated inefficient lighting technology. With LED lighting technology light is generated directly with minimal heat generation. In short this means with LED lighting you get all the light for 10% of the running costs.

Renovator Store Vintage LED Light Globe

LED light maintenance - what maintenance?

The next aspect is to consider lifetime and what the lighting industry call ‘maintenance’. Who maintains a lightbulb? Well dear homeowner, every time you change a light bulb counts as maintenance. If you have out-dated halogen down lights maintenance is that trip to the supermarket and a journey up the stepladders to find, buy, and fit a replacement every 2,000 hours. LED lights commonly have lifetimes around the 25,000-hour mark, and its not uncommon to find LEDs with a 50,000-hour lifetime. If you use those lights for 4 hours a day that means these lights could last for 34 years!


The total cost of owning LED Lights

Putting all these factors together you get the total cost of ownership and that's the important factor to consider when making the switch. Whilst the purchase cost of incandescent lights is much lower because of their inefficiency the total cost of ownership is much higher than LED. How much higher? Well we are talking hundreds of dollars a year higher and over ten years this could mean a couple of trips abroad or a deposit on a car.

limelight led lights

LED lighting - a no brainer opportunity 

Finally, one big question we hear is should you wait to switch? It’s madness to wait until those incandescent lights blow. Why? Well like we already alluded to, you are literally burning money every minute those incandescent lights are switched on. LED lights typically pay for themselves within under a year because the energy savings start from day one.

LED lightbulbs are therefore one of the easiest long term changes you can make to reduce your energy bills with minimal fuss. With a long lifetime and equivalent quality light and a lower total cost of ownership the decision is simple; just fit and forge

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