We are always on the lookout for ways to save you money, because the less money you spend the more you can save for the future. Why pay a company money instead of paying yourself and your family that money? That’s why today I want to talk about spending less on electricity. One way you can do that is by replacing those inefficient incandescent bulbs with LED bulbs. The great thing about LED is that it is very inexpensive to operate, lasts a long time, comes in a variety of colors, and turns on instantly when you flip the switch (none of that slow to warm up or buzzing from the florescent bulbs you probably heard a lot about a couple years ago). Not to mention that LEDs are 42% more efficient and last up to 6 times longer than fluorescent and are 85% more efficient and last 20 times longer than incandescents.
If you’ve looked at the cost on some of these LED bulbs they can be quite expensive, so how much are you actually saving? I’ll show you that the upfront cost may be a shocker but the longterm savings are worth the effort. It is an investment, but a little here, a little there and suddenly you’re on track for your savings goals.
The average US household has 45 75-watt incandescent bulbs that are on for an average of 3 hours per day at 10¢/kWh.
| Incandescent Bulbs | LED Bulbs | |
|---|---|---|
| Initial bulb cost | Total of $45.00 ($1.00 each) | Total of $1620.00 ($36.00 each) |
| Wattage | Total of 3,375 Watt (75 Watt each) | Total of 540 Watt (12 Watt each) |
| Electricity cost (10¢/kWh) | $369.56 per year | $59.13 per year |
| Life span (continuous use) | 1,000 hours | 25,000 hours |
| Life span when used 3 hours a day, 7 days a week | 10 months 29 days | 22 years 9 months 30 days |
| Number of times an incandescent bulb to be replaced each year | Total of 49.32 times (1.09 times each fixture) | |
| Number of times an incandescent bulb to be replaced during the LED bulb’s lifespan | Total of 1,125 times (25 times each fixture) | |
| Cost of bulb replacements each year [(Incandescent bulb cost) x (Number of replacement per year)] | Total of $49.27 ($1.09 each fixture) | |
| Total Annual Cost {(Cost of bulb replacement) + (Electricity)] | $418.84 per year | $59.13 (only cost of the electricity) |
| Total cost (after 22 years 9 months 30 days) [((Total Annual Cost) x (22 years 9 months 30 days))+ Initial Instalation Cost) | $9,608 | $3006 |
| Total savings with LED bulb (after 22 years 9 months 30 days) | $9608-$3006=$6602 | |
| Break-even point | 4 years 4 months 16 days | |
| Total Savings After Break-even Point Compounded at 8% | $14,950 | |
There are a number of variables that go into this calculation, so if you’d like to play with it more [here is a calculator][http://www.ledwaves.com/pages/led-calc] you can use to adjust according to your personal energy usage, electricity costs, or bulb costs.
So how do you go about shopping for LED bulbs? There are a few things you should know first.
- LED brightness is measured in lumens not watts. For comparison: 40 watts is be equivalent to 450 lumens, 75 watts is equivalent to 1100 lumens, and 150 watts is equivalent to 2600 lumens. The wattage on an LED is bulb is much lower than an incandescent. The reason they are more efficient.
- LEDs come in a wide array of colors. Popular colors similar to incandescents would be “warm or soft white.” “Bright white” will look more like daylight. Light color is measured in kelvins, the color temperature. The warm light associated with a typical incandescent is between 2700 and 3500 kelvins.
- LEDs are an investment. You won’t have huge savings right away, and it will take time to see your return on investment.
- If you have dimmable switches, you will need LEDs that are compatible or you will need to replace the switch.
- LEDs are cooler but they still produce heat, so they need a way to release that heat or they will burn out ahead of their time. If you have an enclosed light fixture, make sure you are using an LED bulb that is approved for recessed or enclosed spaces.
- LEDs are better at directional lighting, so you may need to do some trial an error to see if the lighting is going to work for different types of fixtures i.e. mirror lighting, ceiling fixtures, spot lights, etc.
- Make sure you buy from someplace that allows returns.
To learn more go to the [Department of Energy Lighting Facts Site][http://www.lightingfacts.com/].
A few other perks to the LEDs is they generate almost no heat or UV rays. That can reduce your air conditioning costs and stop fabrics and furnishings from fading. Also, many LEDs allow you to control them with your smartphone, which is great for home security and also just fun.
The government has regulated that by 2020 bulbs have to be 70% more efficient than they currently are, so incandescents will become harder to find. LEDs may be slightly more expensive than an incandescent, but the flexibility, lifetime and efficiency make them the more cost effective option. What could your family do with these savings? Start slowly if you want. Replace your most frequently used bulbs with LEDs and the rest as they start to burn out. Before you know it you will have replaced all the bulbs in your home, and you’ll be paying yourself instead of the utility company.
