While LED (light-emitting diode) lighting has been around since the 1960s, it only recently became widespread as standard for energy-efficient lighting in homes, offices, cars, and more. With an increasing focus on maximizing energy efficiency, LED lighting can help reduce home utility costs compared to outdated lighting fixtures.

Continue below to find out how — consider this LEDs 101.


    How LEDs Work

    LEDs — also known as solid-state lighting — use the movement of electrons through a semiconductor material to create light. The semiconductor contains positively charged and negatively charged layers, allowing electrons to flow in only one direction and emitting light.

    LED light
    Image Credit: Canva

    Although extremely efficient, a single LED must produce more light for most general lighting applications. However, when clustered into an LED module, LEDs become powerful and efficient lighting systems. The LED module contains the LED circuit board and LED chips/diodes. Manufacturers combine multiple LED modules into LED lamps and fixtures to meet lighting output and design requirements.


    Advantages of LEDs

    LEDs offer numerous benefits that make them advantageous over other lighting options like incandescent and fluorescent bulbs. They’re revolutionizing the lighting industry with benefits ranging from dramatic energy savings to long operational life spans.

    Around 80% of the electricity LEDs consume is converted into visible light vs. only 10% for incandescent, driving dramatic energy savings.

    Properly designed LEDs can operate for over 100,000 hours. This is 5–10 times longer than CFL bulbs and 50–100 times longer than incandescents. Less frequent replacement provides cost savings.

    With no fragile filaments or glass bulbs, LEDs withstand vibration and impact, making them ideal for vehicle, industrial, and commercial settings.

    LEDs emit less infrared heat than incandescents and halogens, reducing HVAC load and fire risk.

    LEDs reach full brightness immediately with no warm-up delay. 

    The focused light emission of LEDs reduces waste, making them ideal for task lighting.

    LEDs emit almost no UV or IR radiation, which can otherwise cause deterioration or heating.

    Unlike fluorescents, LEDs do not cause electromagnetic interference issues around sensitive equipment.

    LED efficiency and performance are not compromised by cold temperatures like fluorescents.

    LEDs contain no toxic mercury like CFLs; LEDs are much safer to manufacture and dispose of.


    Uses for LEDs

    The development of affordable, bright white LEDs over the past decade has opened up a wide range of new applications for LED lighting. From home accent lighting to industrial fixtures, LEDs are becoming the preferred lighting option in most settings where color quality, efficiency, and long life are priorities.

    • Vehicle lighting — Brake, signal, tail, and headlights
    • Home accent and task lighting (under cabinets, artwork, shelves)
    • Under-cabinet lighting in kitchens
    • Retail display case lighting
    • Streetlights and parking lot lighting
    • Ceiling-mounted and sconce fixtures
    • Security lighting that works directionality
    • Indoor horticulture grow lights
    • Holiday string lights
    • Recessed downlights
    • LED strips and tape lights
    • Hazardous location lighting where flammable vapors are present
    • Energy Saving Ecosmart LED recessed lights

    Cultural landmarks like the Empire State Building, Rockefeller Center Christmas Tree, Times Square Ball, and Buckingham Palace have all switched to more efficient and longer-lasting LED lighting.


    Disadvantages of LEDs

    The most notable disadvantage of LED lighting remains the up-front cost. While incandescent can cost under $1, residential LED lamps often range from $2–$100 depending on light output needs. Lower-lumen LEDs used in strings and decorations are inexpensive, but a 60W-equivalent LED spotlight carries a higher price tag.

    Over time, though, reduced energy and replacement costs generally offset the higher initial LED cost. Replacing a 60W incandescent used three hrs/day with an equivalently bright 10W LED, for instance, can yield over $100 in electricity savings over the multi-decade LED life span.


    LED vs. Incandescent, CFL, and Halogen

    LEDs offer distinct advantages over other lighting technologies. Incandescent bulbs are incredibly inefficient, converting ~10% of energy input into light. The rest generates heat, driving up energy costs. Incandescents also last only 1,000 hours.

    christmas lights
    Image Credit: Canva

    CFLs provide ~75% energy savings over incandescents. However, they contain mercury, have long warm-up times, shorter lifespans than LEDs, and premature failure with frequent switching.

    Halogen bulbs offer increased efficiency over incandescent bulbs but only convert ~20% of energy into light. Halogens also run hot and have relatively short lifespans.

    LEDs deliver the highest efficiency and most extended lifespans while running cool. The up-front cost has been their only limitation, but long-term energy savings provide ROI.


    The LED Revolution

    As LED manufacturing advances and costs decrease, LED lighting will comprise over 75% of the general-purpose lighting market by 2030, per the U.S. Department of Energy (DOE). The growing smart lighting trend also boosts LED adoption.

    The DOE estimates widespread LED implementation over the next 20 years can eliminate the need for around 30 large power plants in the U.S. LEDs represent the future of efficient, eco-friendly lighting.


    So, Is LED Lighting Worth It?

    Given their performance advantages, LEDs usually present a compelling lighting solution despite higher up-front costs. Energy and replacement cost savings for frequently used lighting quickly offset initial pricing. As a homeowner, you stand to benefit considerably in the long term by upgrading your lighting to LED technology. For residential consumers, replacing inefficient incandescent bulbs with LEDs is an investment that pays dividends over time.

    For applications with rarely used lights, the energy savings of LEDs may not justify their higher initial cost. However, continuously decreasing LED prices make them the economical choice in almost all lighting applications.


    FAQs About LED Lighting

    How long do LED bulbs last?

    Quality LEDs deliver anywhere from 25,000 to 100,000 hours of life. At three hours of daily use, an LED can effectively operate for over 20 years before needing replacement. Higher output LEDs trend toward the 25,000-hour range.


    Do LEDs produce instant light?

    Unlike CFLs, LEDs provide full brightness immediately with no warm-up delay when powered on.


    Can LED lights be dimmed?

    Although not universal, most modern residential LED bulbs work with standard dimmer switches. Always pair dimmable LEDs with compatible dimmers. Cree LED light bulbs are dimmable.


    Do LEDs emit UV or infrared radiation?

    LEDs emit negligible amounts of UV or IR radiation, unlike other lighting technologies that can deteriorate materials or cause heat buildup.


    Are LEDs safe to dispose of?

    Yes, LED bulbs are safe to send to the landfill. Some municipalities also offer LED recycling programs.


    Are LEDs directional?

    Yes, LEDs are directional light sources, meaning they emit light in a specific direction — unlike incandescent and CFL bulbs, which emit light (and heat) in all directions.


    Can LEDs be used in outdoor fixtures?

    Yes. Choose LED lamps and fixtures specifically rated and designed for outdoor installation.


    Editorial Contributors
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    Danny Lipford

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    Danny Lipford is a home improvement expert and television personality who started his remodeling business, Lipford Construction, at the age of 21 in Mobile, Alabama. He gained national recognition as the host of the nationally syndicated television show, Today's Homeowner with Danny Lipford, which started as a small cable show in Mobile. Danny's expertise in home improvement has also led him to be a contributor to popular magazines and websites and the go-to source for advice on everything related to the home. He has made over 200 national television appearances and served as the home improvement expert for CBS's The Early Show and The Weather Channel for over a decade. Danny is also the founder of 3 Echoes Content Studio, TodaysHomeowner.com, and Checking In With Chelsea, a décor and lifestyle blog.

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    Andrew Foligno

    Andrew Foligno is an editor for Today’s Homeowner, with over 6 years of experience working in digital marketing. He started his career as a content writer at an agency, covering industries such as HVAC, plumbing, painting, lawn care, and more. Soon, he was promoted to an editor position where he oversaw a team of writers before moving on to other facets of digital marketing. When he isn’t working, Andrew enjoys going to the gym to be active, as well as going to the movies to unwind.

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