Are LEDs Cost Effective?


While initial fixture costs may be higher for some LED lighting solutions compared to incandescent and fluorescent lighting, many other factors need to be considered, such as the total cost of owning, operating and maintaining a lighting system. Because LEDs last longer, there are fewer maintenance and materials costs. In addition, they use less energy, so annual power costs can be reduced by as much as 80 percent. In some cases, payback on LED lighting can be realized in less than three years.

According to the DOE, LED costs are declining rapidly. Some LED packages have declined by half from 2009 to 2010. Prices are expected to continue to decline to approximately $2/klm by 2015. Learn more about cost-effectiveness trends.