Although the initial purchase price is higher for more efficient technologies than for traditional bulbs, significant savings are achieved over the life of the bulb, according to the US Energy Information Administration.
LED lighting technologies have been advancing rapidly with projections for further improvements, resulting in lower cost, increased reliability, and reduced energy consumption. By 2020, EIA projects LEDs to produce more than 150 lumens per watt. Currently, LED lamps produce around 83 lumens per watt, says EIA.
Decreasing prices for more-efficient lighting technologies, aided by state and local incentives and new standards, are leading to increases in the average efficiency of installed lighting equipment over time. Improvements in bulb life mean consumers need to replace them less frequently, reducing projected purchases over the forecast horizon.