How much can switching to LED Light Bulbs lower your electricity bills?
Your electricity bill is the sum of the KWh* that you consume in a month, multiplied by the price of this KW in your region. In the USA the price of the KW ranges from 8 to 15 Cents, depending on your location**.
Let’s say, for example, that you have 20 (100 W) standard incandescent lamps at your home and you use each of them for an average of 5 hours every day. So the total yearly consumption of these lamps would be:
20 (Lamps) X 100 (Watts) X 5 (hours) X 365 (days/year) = 3.650.000 Wh = 3.650 KWh
Then, your bill would be 3.650 X $0.12** = $438
If you substitute these lamps by LEDs with the same intensity of light (the measurement unit is Lumens), you will get an equivalent 13 W LED bulb instead of the old 100 W.
Your consumption will then become:
20 (LED lamps) X 13 (Watts) X 5 (hours) X 365 (days) = 474.500 Wh = 474.5 KWh
And you will pay 474.5 X $0.12** = $56.94
Hence, the difference in your yearly bill will be: 438 – 56.94 = $381.06.
Your savings come out to 87%.
Finally, if we switch out 20 of your old lamps for LEDs,
20 X $8*** = 160$
Your profit comes out to 381-160= $221 for the 1st year,
Then $381 each year for at least 5 years, which equals to more than $2.000 in total.
Now, if you are ready to pay $160 to save $2.000
* Watt/hour is the electricity consumption unit, 1 KWh= 1000Wh
** The average price people in the U.S. pay for electricity is about 12 cents per kilowatt-hour. (Context: A typical U.S. household uses about 908 kWh a month of electricity.) – Source: Energy Information Administration
*** This price is for 15W LED lamp, Prices range from $0.99 (2W) to $19.99 (20W) according to the Watt / Lumens of the lamp.
Comparison Chart: LED Lights vs. Incandescent Light Bulbs vs. CFLs