Government Subsidized LED Light Efficient But Overpriced
Last year the US government offered a $10 million award (the “L Prize”) as a prize to the manufacturer which developed the most affordable ‘green” light bulb. Governments worldwide are making a push for consumers to switch over to LED lighting since it is more cost effective in the long run than traditional incandescent lighting. Many city planners are starting to replace the incandescent bulbs in their lighting grids to LED lights, but consumers will need to make the switch in their homes and lawns as well.
US Energy Secretary Steven Chu offered the L Prize to manufacturers of light bulbs in the hopes that it would propel the lighting industry into the future. Chu also added the requirement that at least some of the parts would need to be manufactured in the US in order to try and spur job creation and combat the recession.
The prize winning light bulb made by Philips is now on the public market and should become widely available in the coming weeks—but it probably won’t be getting too many buyers since it is priced at a whopping $50.00. While $50.00 is perhaps not entirely unreasonable for a light bulb which is going to last a really long time and consume very little energy, it probably isn’t what most consumers are thinking of when they think “affordable.”
Since incandescent light bulbs are gradually being phased out of existence, consumers will have no choice but to eventually replace all their light bulbs with energy-efficient LED bulbs. Philips had no comment for the press regarding the surprising price of its award-winning light bulb, and many analysts wonder how the company could have won the award at all. The Energy Department however did comment on the prize, stating that they believe it is fair because they predict that the cost of the Philips L Prize bulb will drop over time and eventually be completely affordable to consumers.
Does this mean that LED light bulbs still aren’t affordable for the home? Hardly; many LED bulbs already on the market cost less than half of what the L Prize bulb costs, which is why the government award to Philips has surprised so many people. So while you’re waiting for the price to drop, consider going ahead and replacing some of your incandescent bulbs with the energy efficient light bulbs which are already available on the market. They’ll pay for themselves quickly since you’ll save energy and therefore money every month. You also won’t need to replace them nearly as often, which will quickly add up to more savings.
LED lights will hopefully cost even less within a few years, but by then you could have saved a lot of money simply by switching to the LED lights earlier. Regardless of when you choose to make the switch, the time is coming when you’ll need to say goodbye to your incandescent lights. In all likelihood the Philips bulb will drop quickly in price and actually merit the L Prize which it was granted.
