Here's How Much Money You Can Actually Save Switching To LED Light Bulbs

Out of the different types of lighting you can buy, purchasing LED lights is one of the best ways to reduce your energy bill throughout the year. Although there are many other lighting options you can choose from, including incandescent, halogen, and compact fluorescent lamps (CFL), none of them can match the savings you get from LED bulbs in the long run. In fact, LEDs are now the most popular lighting used in homes and businesses. In 2019, Statista reported that almost half of all light sources were LEDs, and by 2030, that number is expected to reach 87%.

So, what makes these bulbs so popular? For starters, these LEDs are very efficient. A single 16.5-watt LED light bulb can be used to replace a 75-watt incandescent bulb (the kind that gets hot) or a 22-watt CFL, according to non-profit Green America, which also notes that LEDs are long-lasting. These high-efficiency bulbs can run for two to four times longer than fluorescent lights and up to 25 times longer than incandescent ones, though the longevity may be influenced, in part, by how well the bulbs were built.

The U.S. Department of Energy (DOE) estimates that 15% of the average home's electric bill goes towards lights. For homeowners, switching to LED lights results in substantial savings. What's great about this is that you can enjoy the same lighting levels you get with CFL or other bulb types, but with lower energy usage and less money spent to get it. According to the DOE, by making the change from other lights to LED lights you can shave off $225 in energy costs per year, though the savings will be most notable in homes that replace incandescent bulbs. That may not seem like a lot but over a period of time, it adds up. In a survey published by the Consumer Federation of America (CFA), it was estimated that some consumers could see energy savings of around $1,000 in 10 years, assuming their home uses at least 20 lights that are switched over to LEDs.

Though the energy reduction is a bit part of cost savings, LED bulbs also save you money due to how long they last. Although these bulbs typically cost more upfront, they last much longer, meaning you won't have to buy replacements as often. For example, Philips claims its latest-generation Hue LED light bulb lasts up to 25,000 hours or 25 years. Compare this to incandescent lights, which cost as little as a dollar but have much shorter lifespans, running an average of 1,000 hours before needing to be replaced (via USA Today).

Soon, buying lights that are not LEDs will no longer be an option. In 2022, the Biden administration implemented energy regulations that will phase out the use of non-LED lights, in addition to placing bans on manufacturing and selling them starting in 2023. Officials expect the move will collectively save consumers $3 billion dollars on their utility bills every year and reduce global carbon emissions by 222 million metric tons annually (via CNBC). This amount is equal to the emissions generated by 28 million houses each year.

In the meantime, you can still save money on your lighting bill by making sure that the LED bulbs you choose are the right wattage, color, and lumens for the space they are in, otherwise you may have to spend more money to buy different bulbs. You can also save money by turning off lights whenever they are not in use, which is where smart plugs come in handy. Alternatively, you can always opt for smart LED lights, which can slash your bill even more. With smart light bulbs, you are able to schedule when your lights will be switched on and off and also track energy usage to see when your home is consuming the most energy.