Do Led Bulbs Save Money

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on August 13, 2022

Find Out If Led Bulbs Save Money

Today, energy costs a lot more than in the past. It is also more difficult to put money aside. Many people ask themselves why they can’t save money? In this context, they try to cut down on energy bills. This is where LED bulbs step in. Do LED bulbs save money? Yes, they do, and here you can learn more about different types, how much they consume and if you can save money on your electricity bills.

Do Led Bulbs Save Money for Real?

LED bulbs have been a trend for the past few years. Many energy experts recommend using them. Compared to classic incandescent bulbs, LEDs are more economical. In the beginning, the trend was to swap out incandescent bulbs for fluorescent bulbs. Now, the consensus is to swap to LED lights. This is what green energy experts promote.

CFL lights vs. LEDs

CFL lights are compact fluorescent lights. They use a different technology compared to LEDs. These bulbs contain a glass tube. The system functions based on mercury and argon vapors. Combined with electrical currents, these elements create light.

You might have touched a fluorescent light before. Then, you must have felt they are warm. That is because these bulbs generate heat. To reach their maximum potential, they must warm up. They also need a few seconds to start warming up. Afterward, they can generate light.

This process uses energy. As a result, fluorescent bulbs have a higher energy consumption. Yet, these bulbs are more efficient than classic incandescent ones. A fluorescent bulb uses around 13 watts. From this energy, it produces as much light as a 60-watt incandescent bulb.

The system LED bulbs deploy is different. These bulbs use negative and positive charges. The bulb charge changes very fast. As a result, the bulb creates visible light. LED bulbs produce light in an instant. They don’t need to warm up before. In conclusion, they are more efficient because they work faster. Also, they create a dimmable light. For many, this type of light is better. It has a more pleasant and eye-soothing effect.

Comparing the Costs

Do led lights really save money? The answer is yes. Here are the numbers that prove it. We’ll compare the cost of the most popular types of bulbs:

1. LEDs
2. CFLs
3. Incandescent bulbs

LED bulbs consumption

Let’s start with the price. LED bulbs are more expensive. There is also a different range of bulbs in this category. You can expect to pay different prices. The average LED bulb costs around $3 – $10. You can even find LED lights at lower prices – around $3 apiece.

This is not a lot to pay for an energy-saving bulb, but many people still avoid LEDs. Why is that? Not too long ago, LED bulbs were three or four times more expensive. The good part is the electricity consumption. If your home has around 40 LED bulbs, you’ll pay around $55 per year. Bear in mind that these bulbs produce the equivalent of a 60-watt brightness. Yet, they only use 9 watts to generate this light.

LEDs are more efficient because of their longevity too. They are less likely to need replacement compared to other bulb types. These bulbs’ price depends on their size and watts. It also depends on how many you buy. Many models come in multi-packs, which lowers their price. You can spend around $8 on a bulb from a reputable brand. For comparison, here is an overview:

Consumption	Price
3-watts LED	$2-$4
9-watts LED	$2-$5
100-watts LED	$4-$10

There are also other types of LEDs. They all have different prices. The cost depends on the LED’s quality and functionality. Here are more examples:

1. Ecosmart LEDs – $40
2. LED flame light – $4
3. Dimmable outdoor LED floodlights – $10 – $100
4. Average LED bulb- $3 – $10
5. LED globe lights – $6
6. Smart LEDs – $15 – $50
7. LEDs that change colors – $25

Fluorescent Bulbs Consumption

Fluorescent bulbs are not expensive. This explains why they are quite a popular solution. You can get one for as little as $3. You can calculate how much this means for an entire home.

Approximately 25% of U.S. households use at least 40 bulbs. If you have 40 fluorescent lights for five hours per day, 350 days per year, the energy consumption will amount to around $100 per year. Remember, this only applies if you use CFLs exclusively.

Incandescent Bulbs

Incandescent bulbs are cheap. This explains why they are still quite common. You can pay as little as $1-$2 per bulb. This means you would only need around $50 for all the bulbs in your home. But when it comes to consumption, you lose money.

An incandescent light bulb of 60 watts that’s on for five hours a day costs $10.95 per year at a fixed rate of $0.10 per kWh. For about 40 bulbs, you would pay about $430 every year.

The Bottom Line

LED lights cost more, especially if you have many bulbs at home. Yet, switching to these lights is more energy- and cost-efficient in the long term. Here is an estimation of how much you would pay in a year with LED, CFL, and incandescent light bulbs, for the same price ($0.10 per kWh) and a usage of 5-hours per day.

	LED	Incandescent	CFL
Watts (the equivalent of 60 watts)	10	60	14
Cost per day	$0.005	$0.03	$0.007
Cost per year	$1.83	$10.95	$2.56

You would pay about $73 per year for 40 LED bulbs (40 x $1.83). In the first year after the switch from incandescent to LED bulbs, you would save around $357 ($430 – $73 ).

In four years, with LED bulbs, you would save approximately $1,200. This amount can go to your savings account. Consider how much you could save in 20 years. Depending on the savings account type, you can also earn interest and multiply your savings.

You can also use a mix of efficient bulbs, LEDs, and CFLs. Each time a fluorescent bulb burns out, you can replace it with a LED.

How to Switch to LED bulbs

Do LED lights save money if you change all the bulbs in your home? This switch should bring you financial advantages in the long run. You should lower costs on electricity bills, but changing all your bulbs to LEDs is costly. The more bulbs you need, the more you will spend. That is why you should budget and prepare for this change.

If you want to change all the lights at once, you’ll probably need at least $150 – $200 or more. As an alternative, you can do this bit by bit.

Start with the areas in your home that have more lights. This can be the living, kitchen, hall, etc. Then, move to the rest of the rooms. Finish with the one that has the fewest lights. You can also choose the opposite order. Start with the rooms that have a few bulbs. Then, calculate the costs for the rest of the rooms. Finish with the one having the largest number of bulbs.

If you want to save more money on electricity bills, also consider motion sensors. Now that you’re changing the bulbs, think on a larger scale. There might be different parts of the house where you waste energy because you keep the lights on most of the time. These areas may include the hall, porch, kitchen, or living room.

You might spend time in these parts of the house in the evening, which is why you’re used to keeping the lights on all the time. That means wasting energy, though. You can reduce your consumption with motion sensor lights. These will detect motion and light up when someone is there. Then, they will automatically switch off. You can configure the system to keep the lights on for as long as you want after detecting motion.

What Makes LED Bulbs Different?

LED lights are also known as light-emitting diodes. They contain two electrodes. These bulbs offer a one-directional light source. To emit light, the LED needs the current to pass through it. Offering a one-directional light, these bulbs are more efficient.

LED bulbs had a different purpose in the beginning. You could find them in smaller electronics. These bulbs served to create light instantly. They produced it as the electric current passed through them.

LED bulbs stand out from the rest of the bulbs through their longevity. These bulbs will last five times longer than the rest. You will use them for tens of thousands of hours more. Such is their resistance that some offer warranty. The manufacturer can guarantee a minimum lifespan, but this is not a rule. Check out this detail if you plan on switching to LEDs. The warranty is expressed in a certain number of hours. If the bulb breaks before, you can get a refund.

What to Look for When Buying LEDs

LEDs come in different forms. Pay attention to their characteristics. Some facts you should consider include

• Functionality (smart, dimmable, multi-color, etc.)
• Wattage
• Type of light (warm or cold)
• Socket
• Lumens

There are different types of sockets. Some might not be compatible with your home. For this reason, check the specifications. You will find them on the package.

The wattage is also important because it shows how much energy the bulb uses. A 45-watts incandescent bulb works like a LED bulb of 3 watts. A 150-watts incandescent bulb equals a 26-watts LED. In general, LEDs use between 2 to 17 watts. This means they consume up to 90% less than incandescent lights.

The lumens are another aspect to take into account. These show how much light LEDs produce. The traditional 60-watts incandescent bulb provides around 800 lumens. You can achieve this brightness with a 10-watts LED.

Do LED Light Bulbs Save Money? What About Other Energy-saving Methods?

There are other ways to cut your electricity bill. Here are some examples:

• Turn the lights off when you’re not using them. Turn the TV off when not in use. Unplug the appliances you’re not using. Keep the air conditioning turned off when you leave home.
• Replace old appliances with new ones. These consume less energy. Opt for energy-efficient appliances. Use a solar water heater. These appliances consume a lot of energy; solar heaters are green and cost less. Also, use smaller appliances when cooking. They need less energy to function.
• Use a smart thermostat. It will allow you to control the temperature in each room more easily. You can set a lower temperature in the rooms you’re not using. That way, you’ll save money.
• Insulate your house. That way, you prevent the heat from wasting in the cold months. You’ll also keep the heat out during the summer.
• Dry your laundry on a clothesline in the backyard or on a rack. Avoid the electric dryer that uses a lot of energy.
• Keep the blinds closed during hot summer days. This way, you’ll cut down on air conditioning consumption.

If you still have problems paying bills, you might want to budget. Budgeting allows you to assign money to your expenses. That way, you don’t have past-due bills. Some popular budgeting strategies include:

• The 50-30-20 method
• The digital envelopes method
• The 60% solution

Frequently Asked Questions (FAQs)

Do LED lights really save money?

LED lights use up to 90 times less energy than traditional incandescent lights. They are one-directional, efficient bulbs. They also last longer than any other bulbs.

How much money will I save with led light bulbs?

The savings depend on the number of bulbs you have in your home. The average house has 35-40 bulbs. If all these are incandescent, you spend around $350 per year. With LED bulbs, you spend about $90.

How do I save money on home energy bills?

Try using less energy with energy-saving appliances. Also, keep all the devices and appliances unplugged when not in use. To make sure you have money for your bills, use the half-payment method. It will allow you to save money for this purpose. This way, you avoid penalties and debt. You can use the method for any recurrent bills. You might even end up fixing your credit fast by using it.

Sources:

Inflation rate for electricity between 1913-2022. Electricity price inflation, 1913→2022. (n.d.). Retrieved June 25, 2022, from https://www.in2013dollars.com/Electricity/price-inflation

LED lighting. Energy.gov. (n.d.). Retrieved June 25, 2022, from https://www.energy.gov/energysaver/led-lighting

Jc. (2022, May 12). Comparing energy savings: Led, CFL, & halogen efficient light bulbs. Del Mar Fans and Lighting. Retrieved June 25, 2022, from https://www.delmarfans.com/educate/basics/efficient-light-bulbs/#:~:text=LEDs%20are%20made%20to%20streamline%20light%20in%20one,the%20fixture.%20LEDs%20use%20diodes%20to%20produce%20light.

https://energyusecalculator.com/electricity_incandescent.htm. (n.d.).

Regional variations in household lighting consumption driven by bulb choice and bulb count. Homepage – U.S. Energy Information Administration (EIA). (n.d.). Retrieved June 26, 2022, from https://www.eia.gov/todayinenergy/detail.php?id=38452

Automotiveqs. (2022, May 18). How many Watts does a fluorescent light use? Automotive Questions. Retrieved July 7, 2022, from https://automotiveqs.com/how-many-watts-does-a-fluorescent-light-use/

Compact Fluorescent Lights. Appropedia. (n.d.). Retrieved July 7, 2022, from https://www.appropedia.org/Compact_fluorescent_lights#:~:text=Compact%20fluorescent%20lights%20A%20compact%20fluorescent%20lamp%20%28CFL%29%2C,can%20fit%20in%20the%20existing%20incandescent%20light%20fixtures.

Learn about LED lighting. ENERGY STAR. (n.d.). Retrieved July 7, 2022, from https://www.energystar.gov/products/lighting_fans/light_bulbs/learn_about_led_bulbs

LaMonica, M. (2011, July 28). Five things you didn’t know about led Lightbulbs. CNET. Retrieved July 7, 2022, from https://www.cnet.com/culture/five-things-you-didnt-know-about-led-lightbulbs/#:~:text=LED%20bulbs%20do%20get%20hot%20but%20the%20heat,long%20as%20advertised.%20You%20get%20instant%20full%20light.

How much do LED bulbs cost? What is the Price How Much Do LED Bulbs Cost Comments. (n.d.). Retrieved July 7, 2022, from https://www.howmuchisit.org/led-bulbs-cost/

Can I use a higher watt led equivalent bulb in a 60W fixture? EarthLED.com. (2015, February 5). Retrieved July 7, 2022, from https://www.earthled.com/blogs/light-2-0-the-earthled-blog-led-lighting-news-tips-reviews/36300676-can-i-use-a-higher-watt-led-equivalent-bulb-in-a-60w-fixture#:~:text=As%20a%20general%20benchmark%2C%20an%20800%20lumen%20LED,LED%20equivalent%20because%20they%20all%20consume%20under%2060-Watts%21

LED lighting. Energy.gov. (n.d.). Retrieved July 7, 2022, from https://www.energy.gov/energysaver/led-lighting

FAQ – types of residential LED light sockets. LED Benchmarks. (n.d.). Retrieved July 7, 2022, from http://www.ledbenchmark.com/faq/LED-socket-types.html#:~:text=%20FAQ%20-%20Types%20of%20residential%20LED%20light,was%20unsurprisingly%20developed%20by%20Thomas%20Edison.%20More%20

Fluorescent vs. incandescent light bulbs: What’s the difference? MSN. (n.d.). Retrieved July 7, 2022, from https://www.msn.com/en-us/lifestyle/home-and-garden/fluorescent-vs-incandescent-light-bulbs-whats-the-difference/ar-AAYptFJ#:~:text=In%20terms%20of%20upfront%20cost%2C%20incandescent%20light%20bulbs,Light%20bulbs%29%20trailing%20behind%20at%20%241.60%20per%20bulb.

Technology, E. (2022, June 28). LED – light emitting diode: Construction, types & applications. ELECTRICAL TECHNOLOGY. Retrieved July 7, 2022, from https://www.electricaltechnology.org/2022/06/led-light-emitting-diode.html

U.S. Energy Information Administration – EIA – independent statistics and analysis. 2015 RECS: Overview. (n.d.). Retrieved July 7, 2022, from https://www.eia.gov/consumption/residential/reports/2015/overview/index.php

How much do LED bulbs cost? What is the Price How Much Do LED Bulbs Cost Comments. (n.d.). Retrieved July 7, 2022, from https://www.howmuchisit.org/led-bulbs-cost/

Crist, R. (2021, December 30). Best led floodlights of 2022. CNET. Retrieved July 7, 2022, from https://www.cnet.com/home/energy-and-utilities/best-led-floodlight/#:~:text=LED%20prices%20have%20fallen%20steadily%20over%20the%20past,about%20%247%20per%20year%20off%20your%20power%20bill.

The New York Times. (2014, March 22). The best smart led light bulbs. The New York Times. Retrieved July 7, 2022, from https://www.nytimes.com/wirecutter/reviews/best-smart-led-light-bulbs/

Anna, says, T. T., T, T., says, A. G. T., Talk, A. G., Tweets that mention EcoSmart LEDs at Home Depot. Bringing Affordable LEDs to the Main Stream | Green Talk™ — Topsy.com says: Home Depot Power Tools Workshop | How To Eliminate Debt Working From Home says: Speedfight 2 Blue Neons LEDS | Buy a Moped says: EcoSmart LEDs at Home Depot. Bringing Affordable LEDs to the Main … | LED Home Lighting :: Home LED Bulbs – E27 LED Lamps – Home LED Lights says: Install CFLs or LEDs in one light fixture | Practically Green says: & LED Buying: Road Map to Get Beyond the Marketing Hype | Green Talk® says: (2010, November 23). EcoSmart leds at Home Depot. bringing affordable leds to the main stream. Green Talk®. Retrieved July 7, 2022, from https://www.green-talk.com/ecosmart-leds-at-home-depot-bringing-affordable-leds-to-the-main-stream/#:~:text=EcoSmart%20LED%20bulb%20last%2050%2C000%20hours%20and%20costs,account%20the%20fluctuation%20in%20price%20of%20the%20fluorescent.

HOW MUCH DO T8 fluorescent lamps cost?: T8 fluorescent lamps: Lighting answers: NLPIP. How much do T8 fluorescent lamps cost? | T8 Fluorescent Lamps | Lighting Answers | NLPIP. (n.d.). Retrieved July 7, 2022, from https://www.lrc.rpi.edu/programs/nlpip/lightinganswers/t8/09-t8-cost.asp