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Do LED Bulbs Save Money?

Have you ever wondered whether or not LED bulbs really do save you money? I know I have.

I also know that I’ve done some digging to find the answer for you. But first, let’s start by addressing the elephant in the room:

What is an LED lightbulb?

Great question, I’m glad you asked! LED (Light Emitting Diodes) lights are able to produce light when electrical currents pass through them because they function as semiconductors.


Hand changing a regular light bulb for LED at home

How Do LED Bulbs Differ From The Others?

LED bulbs have become all the rage for a variety of reasons. The main ones being that they last a lot longer than incandescent and CFL (Compact Fluorescent Lights). In fact, the average LED is advertised to last about 10 times as long as alternatives. So although you front quite a bit more money when purchasing these sorts of bulbs, the longterm payoff is at least there.

Other benefits to LED bulbs include their cool exterior. If you were born in the 90’s or sooner, then you can remember just how hot bulbs were if you unscrewed them too soon after turning out the lights. You’ve probably even had to unscrew a few with a towel-wrapped hand to keep from burning yourself! LED bulbs are designed to remain cool so you never have to worry about burning yourself on one. That doesn’t mean you should unscrew any while the lights are still on, though. Let’s continue playing it safe when it comes to electricity, okay?

How Do LED Lights Save Money?

Now that we’ve gained a better understanding of what LED lights are and how they differ from other options on the market, it’s time to get back to the pressing question at hand: how do LED lights save money?

Well, if you recall, we learned a little bit earlier that LED lights tend to last 10x longer than their competition. I’m no mathematician, but, considering the fact that LED lights do not cost 10x more than their competition, that’s an instant source of savings right there!

Another neat fact about these lights – especially the ENERGY STAR rated ones! – is that they use about 75% less energy than the rest!

Let’s put the cost savings into perspective with these charts from Energy.gov:

Estimated cost of electricity to light a six-foot tree for 12 hours a day for 40 days

Incandescent C-9 lights $10.00
LED C-9 lights $0.27
Incandescent Mini-lights $2.74
LED Mini-lights $0.82

Estimated cost* of buying and operating lights for 10 holiday seasons

Incandescent C-9 lights $122.19
LED C-9 lights $17.99
Incandescent Mini-lights $55.62
LED Mini-lights $33.29

Well, there you have it. Looks like LED lights are the ultimate go-to if you’re interested in saving big on your energy bill!


  1. I can imagine that LEDs could help cut down utility bills a lot, especially after looking at your chart. It might be time for me to make the switch. Thanks for sharing this.

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