Why do LEDs cost so much?

Posted by kbanks & filed under LEDs, lighting industry.

      

We all know the benefits of LEDs – especially when comparing the technology to traditional incandescent sources. And maybe there would be a faster shift toward the energy efficient luminaires, but the significant price difference holds many consumers back.

To break down exactly why LEDs cost more than other sources – and to help us weigh the benefits and options when choosing lighting – Consumer Reports offered the following insight in a recent article:

  • For starters, the number of LEDs made is minimal compared to the number of incandescent bulbs in production.
  • Producing LEDs takes a lot of effort and the process is expensive.
  • An LED bulb contains a number of components including a heat sink, driver, aluminum and semiconductor chips.

Although all of these factors (and more) affect the cost of LEDs, experts believe that just like other technologies, LED prices will continue to come down as performance goes up.

At this point, do you see LED technology as a worthwhile investment in energy efficiency? Or do you prefer alternative (and less expensive) sources, like CFLs?

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