why are LEDs expensive

LEDs are the best and most modern format of lighting technology now available. They’re more efficient for a whole list of reasons; we have broken down the benefits of LEDs here and why LEDs are more efficient.

Does their efficiency mean they have to be more expensive?

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Why are LEDs globes more expensive?

For decades most of us were happy to stick to our incandescents and halogens – sure, they’re inefficient, dull over time and often ‘blow’ not long after they’re replaced. But, they were so much cheaper than their more modern LED counterparts. The huge difference in price is what prevented most consumers from making the jump to LEDs.

For example, even today an MR16 halogen globe at a competitive retail hardware store is $8; compare that to a $38 LED. GU10s are $11.90 and $14.99. If you have to replace all of your lights at home or in a business, you could be looking at a cost of hundreds of dollars and the difference in your home/business might appear negligible* – it’s not, but we’ll go into that later.

LEDs are much more expensive. Why is that?

LEDs are new – in relative lighting terms. As with any new technology or product, a period of consumer uptake and demand is expected. When consumer demand isn’t high then the number of manufacturers is low and they aren’t competing on price. As demand grows more manufacturers start competing and popping up in the market, they produce products in larger quantities which allows for more competitive pricing and they begin competing against each other, reducing their prices. The more consumers buy LEDs, the cheaper they get.

Imagine how difficult it would have been to convince buyers to purchase LEDs when they were $50+ per globe!

Not only does supply and demand affect the price of the globes, but LEDs contain a more sophisticated technology, more parts to build and contain some costly components like aluminium.

So in summary – more expensive technology and parts, combined with an incremental growth of supply and demand impacting the manufacturing costs means LEDs were expensive and have been decreasing in cost over time.

How can I get free LEDs?

LEDs don’t have to be expensive – not if you get your LEDs from Energy Makeovers. Thanks to the Victorian Government’s VEU Program we can install LEDs in your home or business for free – or heavily subsidised (depending on the globes you require). This will not only save you money on new globes, but save you a fortune on your lighting costs.


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