LED Conversion

Will LED technology really save money?

The following information compares the costs associated with installing an LED system versus a conventional halogen lighting system for the house above.

Halogen versus LED Cost Comparison over 20 year life cycle
  Halogen LED
Total number of project fixtures/lamps1 55 32
Number of lamp replacements2 1267 0
Cost of lamps being replaced3 $8349 $0.00
Cost of service for replaced lamps4 $3600 $0.00
Total wattage of lighting system 1720 343.8
Power/Electricity cost5 $7533 $1505
Warranty of project equipment 5-10 years 15 years to life
Total system cost (Installation & Operation) $23,016 $10,205
Total system cost with service and labor $26,616 $10,205
Savings over the 20 year life cycle   55%
Additional cost of initial installation   18%
Years to recover additional cost of installation   2.8

Notes:

  1. LED linear lighting technique replaces multiple halogen fixtures
  2. Based on industry standard lamp life (halogen=2-5,000 hours/LED=40,000 hours)
  3. Cost of lamps based on lamps available at Home Improvement Retail Stores
  4. Service costs based on 2 service calls per year
  5. Power costs assume system operation of 6 hours per night at $.10 per kilowatt hour

Although the data above relates to a new construction project, you can see the sooner you convert to LED technology, the more you will save. If you install a halogen system this week and convert to LED next week, you will only pay 18% more than if you installed LED initially. In other words, the sooner you switch, the more you save!

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