How Much Money Can You Save By Switching to LEDs?

LEDs keep getting less and less expensive. Cheaper? No. Less expensive? Yes.


With a PG&E instant rebate, Costco was selling PAR30 spot lights for $13.99. I’ve phased in a number of LED lights as some incandescent bulbs faded to black, but I really haven’t seen any dramatic cost savings. The packaging suggests that I may save $165 in energy costs based on 11¢ per kWh compared to using a 75-watt incandescent lamp for 25,000 hours.

25,000 hours at 3 hours/day is 8,333.33 days or 22.8 years. If you divide the $165 in savings over 22.8 years, it comes to 60¢ per month per bulb. That amount of savings is completely masked by seasonal energy usage.

Right now, I’m paying 10.7¢ per kWh so I’m saving even less than the assumptions. The bulb I am replacing is a Sylvania Capsylite PAR30 75W 120V flood. I have to note how much a replacement incandescent will cost me. But at $13.99 a bulb, the break even point will come a lot faster than when expensive LEDs were selling for $40.

Maybe the problem is that I’m switching to LEDs in a haphazard approach. If I commit to switching 20-75 watt incandescent bulbs to 15 watt LED bulbs, that’s 1.2 kW that I will be saving for each hour the lights are on. At 3 hours per day for 30 days, I’m up to 108kWh for the month. The only problem is that I don’t think I have 20 bulbs that are on for 3 hours a day, but I’ll go all in and see if it makes a measurable difference. Stay tune.

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