How much money do LED lights save?

How much money do LED lights save?

One of the major advantages of LED lighting is in its ability to bring you significant energy savings. Put simply, LED lights emit very little heat yet shine just as brightly as traditional bulbs. The difference is that “regular” bulbs generate much more heat, which in turn causes a high electricity bill.

Since the energy being released as heat rather than light, most of our utility bill is actually unused energy. That’s not the case with LEDs, and you should expect to save 80% or more on your energy use without compromising on your light intensity or quality.

But how to calculate that saving?

The best way to do this is by looking at your current annual running costs using the following simple equation:

Annual $ Cost = Wattage (as a % of 1000 Watts or a KW) x Hours of use per day x cents per KWH that you currently pay for electricity.

So, if you take a 60w bulb that you currently use in your lamps around the home your annual running costs for say 20 such bulbs would be; 60W/1000 x 5 (hours p/day) x 7 (days p/week) x 52 (weeks per year) x $0.27 (per KWH) x 20 (bulbs) = $589.68

Now we replace this with an equivalent quality LED bulb and apply the same equation; 10W/1000 x 5 (hours p/day) x 7 (days p/week) x 52 (weeks per year) x $0.27 (per KWH) x 20 (bulbs) = $98.28 By changing to the LED equivalent, you will save a whopping $491.40 or 83% per year on the lighting component of your electricity bill.

Hopefully that’s all made sense! If in doubt, do not hesitate to ask for our help via

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