FAQ - Will LED lights be cheaper to run

Probably. While LEDs use less electricity, they initially cost more to purchase. When comparing LEDs against traditional incandescent lighting, LEDs are almost always a good investment. With the typical payback period being 2 to 4 years. However LEDs are harder to justify when compared against compact fluorescent lights. Especially if your electricity is cheap or the lights are only used infrequently. See the LED return on investment calculator to calculate the cost in your cirumstances.

 

The graph above compares 60Watt incandescent lighting to 12W LED lighting. (3 hours use per day at $0.20 cost per kW/H).

 

Running costs assumptions

When the running cost of an individual light is displayed it is calculated based on the following assumptions.

• Electricity cost of $0.20 per kWh on average
• A single globe is used
• The light is on for 3 hours per day, 365 days a year
• The initial purchase cost is not included in the running costs

 

The payback period can be dramatically shortened if future electricity prices are higher or the light is used for more than 3 hours per day. For example, payback can be under 1 year with 10 hours use per day and $0.40 kWh prices.You can enter in your own assumptions in the ROI calculator

 

Related Pages

• Pros and Cons of LED lighting
• LED Lighting Return on Investment Calculator
• What is the life expectancy of LEDs?

 

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