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Ready to shed some light on your business’s bottom line? Let’s illuminate a path to savings with the brilliance of LED technology. Lighting accounts for 17% of all electricity consumed in U.S. commercial buildings. Upgrading to energy-efficient lighting unlocks significant cost savings due to their improved performance and prolonged lifespan compared to traditional lighting. Explore our comprehensive LED guide to discover the business applications that lower operating costs and illuminate a cost-effective future. 

What are LED lights and how do they work?

LED stands for light-emitting diode. Light-emitting diode (LED) technology is the most energy-efficient lighting technology available today. LED light bulbs are up to 90% more efficient than traditional incandescent lightbulbs. They work when an electrical current passes through a microchip, causing the light emitting diodes to illuminate into visible light. Additionally, they are very compact, providing a wide variety of unique lighting applications. 

LEDs use Lumens instead of Watts

In modern lighting, watts are not the best indicator of illumination. Watts measure energy consumption rather than brightness. A more accurate measurement of quality of light is lumens, which measure the amount of visible light from a lighting source. The higher the lumen rating, the brighter the light will appear.

LEDs are measured in lumens because they’re able to achieve much greater brightness with much less energy than incandescent bulbs. For example, a 6.5-watt LED lamp provides an equal amount of light as a 50-watt halogen bulb. Essentially, these bulbs use 87% less energy (watts) to produce the same amount of light (lumens). When shopping for energy efficient lighting, look for LED bulbs with a low wattage and a high lumen value.

How LED Lighting is Different 

LED technology doesn’t just shine bright—it revolutionizes the way we light our spaces. But what sets them apart extends far beyond their luminosity. There are multiple ways they outshine traditional lighting methods. From advanced illumination technology and safety features to their unparalleled efficiency and longevity, LEDs offer an ideal upgrade for businesses in any industry. 

  • Lighting Technology: LEDs are as small as a poppy seed with the ability to emit a range of colored light including red, green, blue, and white. Their small size and versatility provides many more options for customization and application. 
  • Direction of Illumination: Light is emitted in a specific direction, providing more precise illumination with less heat. Incandescent and CFL bulbs require reflectors or diffusers to point light in a specific direction.  
  • Heat Emissions: LED bulbs are considered a safer lighting option because they emit very little heat. Incandescent bulbs have a much higher operating temperature, posing a fire risk if they encounter flammable materials. 
  • Cold Weather Performance: These lighting fixtures are not affected by cold weather conditions. They operate efficiently and reach full brightness immediately. Traditional incandescent lighting struggles to reach full brightness and efficiency in colder conditions. 
  • Lifetime of Product: These light bulbs last up to 25 times longer than traditional lighting sources. They don’t “go out” like traditional lighting. Instead, its lifetime is determined by how long it takes for an LED bulb’s light output to decrease by 30%.  
  • Energy Costs: Due to their high efficiency, the annual energy cost of a 9-watt, 800-lumen LED light bulb is $1.26. A comparable 43-watt, 800 lumen halogen light costs $6.02 in energy costs each year. 

Types of LED Light Bulbs for Business Applications

Due to their ability to customize color, tone, size, and application, there are a wide variety of LED lighting options for business operations. Picking the right energy efficient light fixture for different areas of your business can provide significant savings over time.  

Standard LED light bulbs

Due to their ability to customize color, tone, size, and application, there are a wide variety of LED lighting options for business operations. Picking the right energy efficient light fixture for different areas of your business can provide significant savings over time.  

Canned LED lights

These lightbulbs are specifically designed to be compatible with canned recessed lighting fixtures. Canned lighting is ideal for creating uniform ambient illumination. Depending on your recessed lighting set-up, they can also create focused task lighting or spotlights throughout your business. Canned LEDs are often available with various features like dimming, color-changing, or smart home compatibility. This variation also typically offers a range of cool to warm toned lighting. 

LED track lighting

Track lighting is an ideal solution for directional lighting. Businesses can use LED track lighting to spotlight merchandising displays or focused task lighting. The beauty of track lighting is its versatility. Businesses can create a unique lighting ambiance to match a specific season, event, or business operation. Simply move the lighting fixture along the track and adjust the lamp to highlight specific features of your business.   

Smart LED lighting

Smart lighting pairs energy efficiency with customization and greater energy management. Businesses can adjust brightness, color, and turn lighting on or off with smart LED lighting. These lightbulbs are compatible with most energy management systems or smart home systems. In order to benefit from smart features, they need to be connected to a Wi-Fi or Bluetooth compatible device. Otherwise, smart LEDs can still be used, however you won’t benefit from the additional smart features. 

Tube LED lights

Many businesses are installing tube LEDs as a replacement for less-efficient fluorescent tube lighting. They’re an ideal lighting solution for offices, kitchens, and medical practices. Energy-efficient tube lights last significantly longer than fluorescent tubes and come in a wide variety of color temperatures to suit most offices. As an added bonus, these lights are safer than fluorescents because they don’t contain mercury. There are two types: direct replacements and ballast-free models. Direct replacements can be installed on existing rapid or instant start ballasts. Ballast-free models must be installed by a professional as the original ballast fixture must be rewired for compatibility.  

Full-Spectrum LEDs

Also referred to as RGB lights, full-spectrum LEDs are able to produce the widest range of colors and temperatures. These are an ideal solution for accent and customizable lighting. They typically come with a remote control or can connect to a mobile device through an app. Businesses use full-spectrum lighting to change their ambiance to thousands of unique combinations to suit their space, mood, or event. This type of technology is available in light bulbs, light strips, and panels to create the perfect ambience. 

Unexpected LED applications

LED technology is improving most of our everyday devices such as televisions, cell phones, and computer screens. These compact LEDs help prolong battery life and improve the efficiency of the device they’re installed in. Additional examples include exit signs and decorative lights as well as car headlights and interior lighting. There are even energy-efficient options for interior fridge lighting! Chances are, if a light goes out in your home or business, you can find a cost-effective LED replacement. 

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Want to take your energy savings even further? Pair your lighting upgrades with a cost-effective commercial energy plan! Our energy experts help you compare the most competitive plans on the market to lock in a low-fixed rate. Request a free quote and start saving today!

How to Choose the Best LED Lighting for Your Business

When it comes to upgrading your business’s lighting solutions, there are a few things to consider. First, take into account the age of your current lighting fixtures. Are any of them outdated, performing poorly, or giving off excess heat? If so, these should be your highest priority. Once outdated fixtures are upgraded, think where an LED upgrade will have the biggest impact on your energy bill. 

By tackling your biggest lighting upgrade first, you’ll notice an immediate reduction in your energy bills. In retail environments, this could be the sales floor and display lighting. For a restaurant, maybe it’s investing in dimmable models for the front of house and tubed lighting for the kitchen. The best advice for LED shopping is to start with the most frequently used and most visually impactful lighting to see the biggest return on investment. 

Leverage LEDs for Lower Business Energy Bills

LED lighting isn’t just a bright idea—it’s a smart investment for businesses looking to reduce energy costs and modernize their lighting solutions. By harnessing the power of LED technology, businesses not only illuminate their spaces more efficiently but also improve their bottom line. Whether you’re upgrading fixtures or investing in smart lighting systems, the benefits of LED lighting are clear: lower energy bills, better illumination, and a brighter, cost-effective future.  

Frequently Asked Questions (FAQ)

Are LED lights energy efficient?

LED lighting is the most efficient lighting technology on the market. LEDs are up to 90% more efficient than traditional technologies like incandescent or fluorescent lighting. 

How long do LED bulbs last?

LED light bulbs have a lifespan of 30,000 to 50,000 operating hours or longer, depending on the model. A typical incandescent lightbulb only lasts around 1,000 hours while a comparable compact fluorescent bulb lasts 8,000-10,000 hours. 

Is LED lighting environmentally friendly?

LED lighting is more environmentally friendly than traditional lighting technologies because it consumes less energy, produces less heat, and contains no hazardous materials. By reducing energy consumption, LED lighting helps lower greenhouse gas emissions and contributes to a cleaner, more sustainable environment. 

Are there any financial incentives or tax rebates available for LED upgrades?

There are a variety of financial incentives for LED upgrades like utility rebates and federal tax credits. These incentives offset the upfront installation costs, providing even more cost savings down the line.  

For additional answers to your energy management questions, please refer to our general FAQ page.