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How to Calculate Energy Savings When Switching to LED Lighting

Updated: Sep 21, 2023

When it comes to improving your home's lighting, LED lighting are a shining choice. Not only do they offer brilliant illumination and a wide range of color temperatures to suit any ambiance, but they also bring significant energy savings and environmental benefits. In this blog post, we'll explore how you can calculate the potential energy savings when making the switch to LED lighting in your home.

Understanding LED Efficiency

LED (Light Emitting Diode) lighting technology is renowned for its remarkable energy efficiency. Unlike traditional incandescent bulbs that produce light through heat, LEDs use semiconductors to emit light. This means they convert a higher percentage of energy into visible light, minimizing wasted energy in the form of heat.

Steps to Calculate Energy Savings when you switch to LED lighting

Step 1: Determine Your Current Lighting Costs

Current Monthly Energy Consumption (kW) = Total Wattage (W) × Hours of Use Daily / 1,000

Multiply the total wattage of all your bulbs by the number of hours you use them daily. Then, divide this by 1,000 to convert it from watts to kilowatts (kW).

Step 2: Find LED equivalents and their protential lighting costs

As LED lightings are significantly more energy-efficient than traditional bulbs, look for LED lighting products that provide the same level of brightness. Usually LED will require lesser wattage compared to florescent lights to deliver the same level of luminosity. E.g. a 48W florescent light source can be replaced easily with a 24W ceiling light source.

Then, calculate the estimated monthly energy consumption for LEDs using the same formula as above.

Step 3: Calculate your potential energy savings by switching to LED lights

To determine your potential energy savings, subtract the estimated LED energy consumption from your current lighting energy consumption.

Potential Monthly Energy Savings (kW) = Current Monthly Energy Consumption (kW) - LED Monthly Energy Consumption (kW).

To translate the savings into dollars, multiply the potential monthly energy savings in kW by your electricity rate per kW-hour (usually found on your utility bill). This will give you an estimate of your monthly cost savings by switching to LEDs.

Environmental Benefits

Apart from saving on your utility bills, transitioning to LED lighting also reduces your carbon footprint. LEDs produce less greenhouse gas emissions because they consume less energy. This is not only beneficial for your wallet but also for the environment.


Switching to LED lighting in your home is a wise investment. Not only do LED bulbs last longer and require less maintenance, but they also deliver substantial energy savings, translating into lower electricity bills. Plus, you'll be doing your part to reduce environmental impact. So, make the switch today and enjoy a brighter, more efficient, and eco-friendly home. Your wallet and the planet will thank you!


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