How to Save on Electricity Costs By Installing Energy-Efficient Lighting

Installing energy-efficient lighting is one of the easiest and most effective ways to reduce electricity costs in your home or business. By replacing old, inefficient light bulbs and fixtures with newer technology, you can realize significant energy savings while still maintaining sufficient and high-quality lighting. Here is a comprehensive guide on how to save on electricity costs by switching to energy-efficient lighting.

Why Energy-Efficient Lighting Saves Electricity

Traditional incandescent and halogen light bulbs convert only about 10-15% of the electricity they consume into visible light. The other 85-90% is given off as heat. That makes them extremely inefficient.

Energy-efficient bulbs like LEDs and CFLs convert a far greater percentage of energy input into light output - sometimes over 90% efficiency. This means for the same amount of light brightness, an LED or CFL will use substantially less power than an incandescent.

Over the lifetime of the bulb, the electricity savings add up. It's why energy-efficient lighting is one of the most cost-effective ways to reduce your energy bills.

Calculating Energy Savings from Efficient Lighting

You can calculate the potential cost savings by switching to energy-efficient lighting using this simple formula:

Annual Energy Savings ($) = Wattage difference x Hours of use per day x Cost per kWh x Days used per year

• Wattage difference - The wattage of the old bulb minus the wattage of the new energy-efficient bulb
• Hours of use per day - Daily hours the light is turned on
• Cost per kWh - Your local electricity rate
• Days used per year - How many days out of the year the light is used

As an example, replacing a 60W incandescent bulb with a 9W LED bulb that's used 5 hours per day, at $0.12 per kWh and 365 days a year would save:

(60W - 9W) x 5 hours x $0.12 x 365 days = $26 per year!

Do this for every bulb replaced with an efficient option, and the savings add up quickly.

Types of Energy-Efficient Light Bulbs

There are a few main options when it comes to high-efficiency light bulbs. Each has their pros and cons.

LED Light Bulbs

LED bulbs are the most energy efficient lighting option, using at least 75% less energy than incandescent bulbs and lasting 25 times longer. LEDs come in many shapes, sizes and light color temperatures.

Pros:

• Extremely long lifespan - can last over 10 years
• Very energy efficient - use up to 90% less energy than incandescents
• Durable and damage resistant
• Operate well in cold temperatures
• No warm-up time required

Cons:

• Higher upfront cost
• Light color and quality varies
• Light distribution can be uneven

CFL Light Bulbs

CFLs (compact fluorescent lamps) offer energy savings of up to 75% compared to incandescent bulbs. They last about 10 times longer as well.

Pros:

• Use 75% less energy than incandescents
• Inexpensive price
• Last up to 10 years
• Wide range of shapes and sizes

Cons:

• Contain small amounts of mercury
• Light color varies and may be suboptimal
• Don't work well in cold temperatures or with dimmers
• May take 30-60 seconds to reach full brightness

Halogen Incandescent Bulbs

Halogen bulbs are a more efficient version of traditional incandescents. They last longer and use less energy.

Pros:

• Less expensive purchase price
• Bright, warm light color
• Dim effectively

Cons:

• Still fairly inefficient - only use about 20% less energy than regular incandescents
• Short 1-2 year lifespan
• Very hot operation temp

Tips for Maximizing Energy-Efficient Lighting Savings

Here are some tips to maximize the cost savings when switching to energy-efficient lighting:

• Replace bulbs used most frequently - Focus first on the most utilized lights
• Choose the right light color - Match the Kelvin temperature to the room (warm, neutral or cool white)
• Use dimmers with LEDs - Dimmable LEDs maintain efficiency at lower brightness
• Combine with occupancy sensors - Automate lights to turn off when not in use
• Take advantage of rebates and incentives - Many utility companies offer discounts on efficient bulbs
• Buy ENERGY STAR-certified - Ensure lights meet high efficiency standards

The Bottom Line

Transitioning to energy-efficient LED and CFL lighting is one of the fastest and most effective ways to reduce electricity consumption and costs in your home or business. The technology has improved tremendously in recent years, with better light quality, brightness, color and dimming capabilities. Take advantage of rebates and programs from utilities and make the switch to save money and energy for years to come.