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LED vs. Incandescent Bulbs: The Real Cost Over Time

October 28, 2025

How incandescent and LED bulbs differ: the fundamentals

While LED bulbs often cost more upfront, the real cost to you isn’t just the purchase price—it’s the power they pull and how long they last. Let’s unpack exactly why that is, how big the differences are, and what that means for homes or businesses.

Here’s a quick breakdown of how the two technologies compare:

Energy use

  • A typical 60 W incandescent bulb uses ~60 watts of power when running.

  • The LED equivalent might use ~8–10 watts (or sometimes fewer) for the same brightness (lumens) level.

  • The U.S. Department of Energy (DOE) states that residential LEDs “use at least 75% less energy, and last up to 25 times longer, than incandescent lighting.”

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  • Incandescent bulbs generate light by passing current through a filament, heating it until it glows. That process is inherently inefficient: much of the electrical energy is lost as heat.
  • LED (light‑emitting diode) bulbs produce light through semiconductors and are far more efficient at converting electrical energy into visible light.
Lifespan / maintenance

  • Incandescent bulbs are short‐lived (often ~1,000 hours in typical home use) compared with LEDs.

  • LEDs frequently are rated for tens of thousands of hours (25,000 hours or more) depending on product quality.

Heat output & secondary costs
  • Because incandescent bulbs produce so much wasted heat, in warm climates or in air‑conditioned spaces they can indirectly raise cooling costs.
  • LEDs run cooler, reducing that “wasted heat” and the associated indirect cost burden.

Quantifying the cost differences: examples and calculations

To move from generalities into actionable numbers, here are some illustrative comparisons.

Example 1: 60 W incandescent vs ≈10 W LED

According to one breakdown:

  • An incandescent bulb (60 W) used for ~2 hours per day uses ~43.8 kWh per year.
  • An LED equivalent (~10 W) under the same usage uses ~7.3 kWh per year.
  • If electricity cost is ~$0.10 per kWh, the incandescent costs ~$4.38/year just in energy; LED costs ~$0.73/year.
    • (These are rough; actual energy rates vary.)
  • Using a longer lifespan scenario: according to one chart, for 25,000 hours of use (which might approximate ~10‑11 years at ~6 hrs/day):
    • Incandescent: ~1,500 kWh → ~$150 (at $0.10/kWh) in energy cost.
    • LED: ~212.5 kWh → ~$21.25 in energy cost.
    • Add replacement costs: for the incandescent you’d need ~21 bulbs for 25,000 hrs, LED just 1. Total cost: incandescent ~$171 vs LED ~$26.25 in that example.
  • Bottom line: while LED might cost more initially (higher purchase cost) the energy & replacement savings quickly drive the lifetime cost much lower.

 

Example 2: Upfront cost differences

  • One source (2025) reports typical LED bulb cost: ~$3–$8 each; incandescent ~$1–$2 each.
  • So you might pay, say, $5 for an LED vs $1.25 for incandescent. That’s ~$3.75 extra upfront. But if you save ~$3–$4/year in energy (or more depending on usage/hours/price), payback is fast..

Payback & ROI

  • Given the huge difference in energy usage + longer life, many sources say the “payback period” for switching to LEDs is often under 1–2 years in typical residential use.
  • In commercial or high‑use settings (many lights, many hours per day), the savings grow even faster.

Key factors that influence your actual savings

Your real world savings will depend on multiple variables. Here’s what to pay attention to:

Usage hours

  • The more hours the bulb is on, the greater the savings advantage of LED.
  • If a light is barely ever used, the payoff for switching is slower.

Electricity cost (rate $/kWh)

  • Higher electricity rates amplify the value of efficiency.
  • In regions with cheap electricity the absolute dollar savings are smaller (though still real).

Bulb quality, brightness & equivalence

  • Make sure the LED you buy is genuinely equivalent in brightness (lumens) and suitable for the fixture.
  • Cheap LEDs may underperform or have poorer lifespan.

Replacement cost & labor

  • In commercial settings where replacing bulbs has labor cost (ladders, scaffolding, downtime), the longer lifespan of LEDs adds extra value.

Secondary costs – cooling/heating interaction

  • If incandescent bulbs dump more heat, in air‑conditioned environments they increase cooling load. Replacing with LEDs reduces that wasted heat.
  • Conversely, in a cold climate where lighting contributes to heat you might see less of that benefit—but even then, the energy/usage savings still hold.

Upfront cost and incentives

  • While LED purchase cost is higher, there are often rebates, incentives, or bulk‑purchase programs (especially for commercial/industrial) that reduce the effective cost.
  • Over time, LED prices have dropped significantly.

 

So what does this mean for a home or business using older lighting?

If your home or business still relies on older incandescent bulbs (or halogen/incandescent style bulbs) then upgrading offers:

  • Lower energy bills: Because each bulb uses far less power, the cumulative savings across many bulbs (especially if used long hours) add up.

  • Reduced maintenance: Fewer replacements required, less labor or downtime.

  • Improved reliability/spread across lifetime: LED bulbs last much longer — fewer failures, fewer disruptions.

  • Better for the environment: Less energy use → lower greenhouse‐gas emissions (assuming grid power has emissions).

  • Potential indirect savings: Especially for businesses, lower cooling load from lighting means lower HVAC cost.

The bulb cost is only part of it, the power draw over time is where most of the cost lies. Upgrading is a “simple” move, but the cumulative effect is significant.

Sample calculation

Here’s a rough scenario to illustrate:

  • Suppose you have 20 light fixtures currently with incandescent bulbs (60 W each) and they are used ~4 hours per day on average.
  • Electricity cost: $0.12 per kWh (assumption for this region).
  • You replace them all with equivalent LED bulbs at ~10 W each.

Incandescent case:

  • Wattage: 60 W × 20 = 1200 W = 1.2 kW when all on.
  • Usage 4 hrs/day → 1.2 kW × 4 hrs = 4.8 kWh/day.
  • Annual usage ≈ 4.8 kWh × 365 = ~1,752 kWh/year.
  • Energy cost: 1,752 kWh × $0.12 = ~$210/year.

LED Case:

  • Wattage: 10 W × 20 = 200 W = 0.2 kW.
  • Usage 4 hrs/day → 0.2 kW × 4 = 0.8 kWh/day.
  • Annual usage ≈ 0.8 kWh × 365 = ~292 kWh/year.
  • Energy cost: 292 kWh × $0.12 = ~$35/year.

Annual savings (energy only): $210 ‑ $35 = $175.

Over a 10‑year period ignoring electricity rate changes and ignoring maintenance cost: $1,750 saved in energy by switching. Then add in fewer bulb replacements, fewer heat/cooling impacts, etc.

Of course actual numbers depend on your local rate, hours of use, number of fixtures, and LED vs incandescent cost.

Things to watch / common misconceptions

  • “LEDs cost too much” — While LED purchase price is higher, if you look at lifetime cost (energy + replacement) the LED wins. Many articles emphasize this.
  • Brightness/color differences — Make sure the LED matches the brightness (lumens) and desired color temperature. Sometimes people switch and the light “feels different.”
  • Usage hours matter — If a fixture is used only rarely (say a closet light switched on only a few minutes a day) the payback may be slow; still better for future.
  • Cheap vs quality LED — Some cheaper LEDs might have shorter lifespan, flicker, or not perform as well; choosing quality (e.g., ENERGY STAR rated) is wise.
  • Heat load trade‑offs — In some heating‐dominated climates, the heat output of incandescent might slightly reduce heating load—but the inefficiency still generally outweighs that benefit.
  • Lighting context — For large businesses with many fixtures, or high‐use lighting (warehouses, offices), the savings scale up dramatically; what’s “simple” for home is amplified in commercial contexts.

Recommendations & action steps

Here are actionable steps whether you’re a homeowner or managing a business:

  1. Audit your lighting inventory
    • Count how many bulbs/fixtures you have.
    • Estimate hours of use per day (high‑use vs low‑use fixtures).
    • Note current type (incandescent, halogen, CFL, LED) and wattage.
  2. Calculate payback
    • Estimate the energy usage of current bulbs:
    • Multiply by $/kWh to get annual cost.
    • Estimate the same with LED equivalent wattage.
    • Estimate cost difference in purchase.
    • Determine how many years until payback (purchase cost difference ÷ annual savings).
    • Consider replacement cost/lifespan as well.
  3. Choose quality LED replacements
    • Look for credible brands, good reviews, ENERGY STAR certification or equivalent.
    • Match brightness (lumens) and color temperature (e.g., warm white ~2700‑3000 K vs daylight ~5000 K) to your space.
    • Consider dimmable features if needed.
    • Check warranty or expected lifespan.
  4. Prioritize high‑impact fixtures
    • Focus first on fixtures that are on longest (hallways, exterior lighting, commercial spaces) because the savings are largest.
    • Less frequent use fixtures can be upgraded later.
  5. Track and review
    • After switching, monitor your electricity bills (or meter readouts) to confirm savings.
    • For businesses, track maintenance/replacement cost savings too.
  6. Communicate value
    • For a business, share the savings and sustainability story: lower energy use, reduced heat load, fewer replacements.
    • For homeowners, framing it as both “lower energy bill” + “less hassle” helps.

Summary & key takeaways

  • While LED bulbs tend to cost more upfront than incandescent bulbs, the major cost is not the bulb—it’s the energy consumed over time and the frequency of replacement.
  • LEDs use significantly less electricity—often 70‑80% less (or more) per equivalent light output.
  • LEDs also last far longer so fewer replacements over the bulb’s lifetime.
  • In many typical usage scenarios, the extra upfront cost is recouped in 1‑2 years, after which the savings continue.
  • For homes or businesses still relying on incandescent lighting, upgrading is a very effective way to cut energy bills, reduce maintenance, and improve lighting reliability.
  • Key variables that impact actual savings: usage hours, electricity cost, quality of LED product, matching quality and brightness of replacement.
  • Even if not every bulb is switched immediately, prioritizing high‑use fixtures gives the best ROI.