Falling LED prices and increases in light quality and bulb functionality are creating a lighting revolution that is set to capture more consumer attention in the immediate future. “The idea of a light bulb being something that you put in, it burns out, and you get another one is becoming a thing of the past,” explains John Bachner, executive director of the National Lighting Bureau. “LEDs, given how long they last, are almost taking on the nature of an appliance.”
This should come as no surprise given the efficiency of LED bulbs. While consumers may wince with sticker shock when they see that an LED light can cost up to 30 times more than an incandescent bulb, their long life and incredible energy efficiency makes them a sound investment. Accordingly to the US Department of Energy, compared to incandescent bulbs ENERGY STAR qualified LEDs use as little as 20 per cent of the energy, yet last at least 25 times longer.
In order to see the true cost comparison of these bulbs, you need to examine how much energy they consume over their life and how often you need to replace them. For instance, for a total of 50,000 hours of illumination, you may need to purchase $50 worth of incandescent bulbs that will require $300 worth of electricity and 40+ replacements. The total bill for 50,000 hours of light could run up to $350.
Choose an LED instead, and you’ll only need to buy one lamp that will last you 50,000 hours at a cost of about $35. That single LED is so efficient that it will consume only $50 worth of electricity, bringing your total 50,000-hour lighting bill to a paltry $85 with zero replacements. Clearly a bottom-line analysis gives LEDs a leg up over incandescents. A recent IMS Research report estimated that LED lamps would save $100 billion in energy costs worldwide over the next five years, demonstrating the incredible cost advantages of this advanced lighting technology.
The good news is that the price of LEDs has been dropping and will continue to fall in the near future. “It’s been falling steadily thanks to mass production,” says Bachner. “There’s been a 30 per cent drop over the last year, or close to that.”
One research report suggests that a 30 per cent per year drop in LED lighting prices will continue for the next few years,[ii] with others predicting that such price decreases will push LED lamps to make up to 66 per cent of the market by 2020.
This popular adoption of LEDs is being spurred on by companies like Philips that’s launching an affordable pricing strategy while adding new functionality such as better dimming a balanced light quality to help consumers make the investment leap. All of this is great news for consumers looking to tap into the efficiency advantages of LEDs without the high price tag.
