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Energy-Saving Light Bulbs: Do They Really Save Money?

Discover the savings and benefits of switching from incandescent to energy-efficient light bulbs.

Carly Reynolds
Carly Reynolds
energy-efficient lighting

With monthly household bills on the rise and a focus on environmentally friendly designs, homeowners are looking to lower costs and decrease their carbon footprint by choosing more energy efficient appliances and fixtures throughout the home. One way to cut costs every month is to make the switch to energy-efficient light bulbs. It’s easy to do once you understand the differences in the types of lighting and how much the type of lighting can impact your power bill. 

According to the National Resources Defense Council (NRDC), the average home has 40 light sockets or more. This doesn’t take into account desk lamps and table lamps used for task lighting. While the savings may seem small per energy-saving light bulb, changing out all the incandescent bulbs in your home to energy-efficient lighting can make a major difference to your power bill, as well as the overall efficiency of your home.

types of light bulbs

The Different Types of Bulbs 

Let’s look at the four most common types of light bulbs available to consumers. All of these are available in a wide variety of base sizes, lumens, and color temperature options. Choosing the most energy-efficient light bulbs for your home is all about understanding the differences between incandescent, halogen, CFL, and LED light bulbs.

Incandescent Bulbs

Incandescent light bulbs have long-time been the norm in homes, originally introduced by Thomas Edison in the late 19th century. They are inexpensive and readily available, making them popular in lighting fixtures, recessed lighting, and in other applications throughout the home. Although these bulbs may appear to be the least expensive when you see them on the shelves, that initial purchase price is where the savings end.  

In fact, of these four common types of light bulbs, incandescent bulbs have the lowest efficiency rating, meaning they waste the most energy. It is estimated that up to 90% of the wattage they use is wasted energy that produces heat, not light. They use more energy than other bulbs while they only last between 700 and 2,000 hours. Incandescent bulbs need to be replaced often, which boosts overall costs considerably, not to mention how much more waste they produce.

Halogen Bulbs 

A variant of incandescent bulbs, halogen light bulbs are the closest you can find to the feeling of natural daylight. However, they are only slightly more efficient, which usually isn’t worth it when you factor in the higher cost and hotter burning temperatures.  

Halogen bulbs aren’t very safe because they burn so hot. Even the smallest trace of the natural oils from your hand can cause the bulb to warm quickly and explode. Of course, you can remedy this by avoiding bare skin contact when changing the bulb, but that isn’t always convenient.

The fact that they burn hot can also cause your air conditioner to work harder than necessary. Too many halogen bulbs in a single room can noticeably raise the room temperature. For this reason, they wouldn’t be a great choice when making the switch to energy-efficient light bulbs.

Compact Fluorescent (CFL) Bulbs 

Compact Fluorescent Light Bulbs (CFL bulbs) are another popular choice for home use. They were released in 1980 as an energy-efficient light bulb alternative to incandescent bulbs. CFL bulbs consume only 25 percent of the energy that traditional incandescent bulbs do. CFL light bulbs also last 10 times longer, which adds to their efficiency because it reduces the frequency of bulb replacement.  

While CFL light bulbs were the original energy-saving light bulb, there is some concern surrounding CFL lights because they include a small amount of mercury, which is highly toxic if you come in contact with it. Most CFL bulbs contain just 4 milligrams of mercury or less.

Light Emitting Diodes (LED) Bulbs

Warm wood kitchen, white LED pendant light, gold LED track lighting.

The most energy-efficient light bulb available for your home is the LED bulb. LED lighting didn’t hit the scene until around 1990. By the early 2000s, LED bulbs were a staple on the shelves of big box hardware stores.  

Short for "Light Emitting Diodes," LED light bulbs not only use less energy than all others listed here, but they’re also estimated to last for up to 20 years. Just imagine how convenient that would be when you have especially tall ceilings or lighting fixtures with bulbs that are difficult to get to.  

One of the main ways LED bulbs remain energy-efficient is by providing light without producing unnecessary heat. This means that LED bulbs aren’t wasting the wattage making heat, not light.  

While the initial purchase of an LED bulb is going to be a bit more expensive than a CFL light bulb, the low amount of energy these bulbs consume, coupled with the length of time between burnouts, more than make up for the initial cost of LED lighting. 

All lighting produces CO2 emissions. According to the Climate Group, 5% of all CO2 emissions worldwide are caused by lighting. LED lighting uses 50 percent to 70 percent less energy, drastically lowering CO2 emissions. If there were a global initiative to use nothing but LED lighting, you could save up to 1,400 million tons of CO2. That could mean more than a thousand fewer power stations would need to be built.  

Some of the major, high-output, home builders still outfit homes with incandescent bulbs because they are more inexpensive per bulb. If you are in the process of building your home, talk to your builder about using LED light bulbs from the start.

Track lighting over home bar, black finish. Flat rectangular outdoor sconce

LED lights aren’t just available in bulb form. You’ll also find under-cabinet lighting, strip lighting, outdoor lighting, and track, rail, and cable lighting that all utilize LED lights.

How to Read the Lighting Facts Label 

Many energy-saving light bulbs provide a convenient Lighting Facts Label on the packaging for light bulbs that help you understand just what you’re getting. In 2011, the Federal Trade Commission (FTC) implemented the Lighting Facts Label. You can think of this label sort of like the nutrition facts for light bulbs. The label even looks similar to those you find on your food in the grocery store. 

The Lighting Facts Label breaks down the basic details of each light bulb, making it easier for you to choose the one that is the most energy efficient while still providing the effect you want. We’ll go over each of these items as we break down how they each influence total cost. This label includes: 

  • Brightness 
  • Estimated Yearly Cost 
  • Lifespan 
  • Light Appearance 
  • Energy Used

Breaking Down the Costs

When you’re selecting energy-efficient light bulbs, the initial cost of the light bulb is far from the only cost factor. When it comes to choosing the most cost effective and energy-efficient light bulbs, there are a variety of factors to consider.

Graph showing life span, watts, average cost of different bulb types.

The average KWh cost is 14 cents per KWh, which is how the “50,000 KWh Cost” was determined. That section of copy should read “50,000 KWh Cost at 14 cents per KWH” or similar.

Initial Cost of an Energy-Efficient Bulb 

This is very basic; the initial cost is how much you pay, per bulb, to purchase the light bulb. While a lower price point may sway you toward incandescent bulbs in the lighting aisle, it could dupe you into paying much more than you need to in order to light your home.  

Energy-efficient light bulbs cost a little more per bulb but bring in savings with the lifespan and the estimated yearly cost. As with many things, if you purchase energy-efficient light bulbs in multi-packs, you can reduce the initial cost per bulb even more.  

Lifespan Costs 

The lifespan of the bulb is the number of hours it typically provides light before burning out. The number of years a light bulb is said to last is determined by an average of three hours per day of usage. If you use lights more than 3 hours per day, you may find that they provide a shorter lifespan.  

Estimated Yearly Cost  

The estimated yearly cost calculation is how much money on average it should cost for electricity if you use the light an average of three hours per day at a charge of 14 cents per kilowatt-hour (kWh). The exact amount you’ll spend in a year will depend on your electric company’s kWh price and how long you use the bulb each day. 

So how much can you really save when you make the switch to energy-saving light bulbs? As you can see, making the switch from incandescent bulbs to LED bulbs throughout your home can save you over $100 a year. When you look at this on a larger scale, if every home in the US made the switch to energy-efficient LED light bulbs, it would save $12 billion every year. 

Watts vs. Lumens 

When you start shopping for energy-efficient light bulbs, two terms you’ll see frequently are watts and lumens. Understanding the difference between these two terms will help you choose the best energy-saving light bulbs for your home.  

  • Watts: refers to how much energy the light bulb uses to produce light. 
  • Lumens: a measurement of how much light is produced by the light bulb.
Lumens, watts graph

Basically, lumens equate to the brightness of the light itself, and watts equate to the electricity used to create that light. You can’t have lumens without watts.

Brightness vs. Light Temperature 

Two more terms that sound similar but measure very different things are brightness and light temperature. Both will be key factors when you choose the light bulbs you’ll use in your home.

Light Temperature

Light temperature, or appearance, refers to how warm or cool the light will appear. Warm light has yellow undertones while cool lights provide blue undertones. The light temperature is measured by the Kelvin scale. Lower Kelvin numbers produce a warm light while higher Kelvin numbers produce a cool light.  

Graph showing color temperature, light appearance and ambiance
  • 2700K – warm yellow light 
  • 3000K – white light 
  • 3500K – bright white 
  • 5000K – blue white light 

White light is soft and has no glare, but blue is often considered better for reading because it doesn’t cause as much eyestrain. Amber lighting doesn’t attract insects, so this would be an excellent choice for outdoor fixtures. Once you choose a light temperature, make sure all the energy-efficient light bulbs featured in that room are the same light temperature for consistency.

The Benefits of Energy-Efficient Light Bulbs 

There are many benefits to making the switch from incandescent bulbs to energy-efficient light bulbs.

Incandescent bulb side by side with energy efficient light blub.
  • CFL and LED light bulbs last longer than incandescent bulbs, so there are fewer bulbs to replace over time.  
  • They use a fraction of the energy to run than incandescent bulbs. This saves valuable energy resources and lowers your monthly energy bill.  
  • Energy-saving light bulbs lower greenhouse emissions. Every time you replace an incandescent bulb with energy-efficient light bulbs, you remove half a ton of CO2 emissions, which are a top contributor to global warming. 
  • Energy-efficient light bulbs produce less heat, helping to reduce the work necessary for your air conditioner to maintain comfortable room temperatures.  
  • Because energy-efficient bulbs last longer, there’s less waste associated with bulb disposal.

Energy Star Rated Light Bulbs 

Energy Star ratings are provided by the US Environmental Protection Agency, and you can find them on everything from home appliances to light bulbs. If you see this certification on your light bulbs, it means that they provide the features you expect while using minimal energy. Keep an eye out for that blue star on any electrical items you add to your home to ensure you’re choosing the most energy-efficient options for your home.

Proper Disposal of Light Bulbs

Recycling bin

Eventually, both incandescent and energy-efficient light bulbs hit the end of their lifespan. When they do, it is important to dispose of them properly.  

Incandescent bulbs, LED bulbs, and halogen bulbs can simply be thrown in the trash can because they don’t contain any hazardous materials.  

CFL bulbs do contain a small amount of mercury which means they should be handled more carefully than the others and recycled differently. Often, big box hardware stores in your area act as light bulb recycling centers. These same recycling centers are where you’ll go if you need to dispose of a broken CFL bulb.

Cleaning Up a Broken CFL Bulb 

 If a CFL bulb does happen to break or shatter, there are some simple steps you can take to ensure a safe clean-up: 

  1. Remove other people and pets from the room. 
  2. Turn off all air circulators, such as fans and air conditioning units. 
  3. Open the windows and air the room out for 5 to 10 minutes. 
  4. Gather the items you’ll use to clean up the broken CFL bulb, including thick paper or cardboard, paper towels, sticky tape, and a zippered plastic bag. 
  5. Use a wet paper towel to move the broken CFL bulb onto a stiff piece of paper or cardboard.  
  6. Put those broken pieces and the supplies used for clean-up in a zippered plastic bag or glass jar with a lid. 
  7. Repeat until all pieces of CFL bulb are cleaned up.  

Do not vacuum the area around the shattered bulb, as this could spread mercury and move it into the air. Turn the contents into your local light bulb recycling center.

Do energy-saving bulbs actually save you money?

Even though energy-saving bulbs cost more per bulb upfront, they are absolutely a huge cost-saver over time. Not only do they use less energy, but they last longer and they are a much more responsible choice for the environment. Making the switch to all energy-saving bulbs throughout the home will yield some pretty impressive results.

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