How Your Business Can Save Money with an LED Sign

Cut costs and still help visitors find your business after dark? That’s a win-win; but, if your illuminated signs are still outfitted with CFL (compact fluorescent light) bulbs, you may be spending unnecessary cash on their upkeep. It may be time to switch to LEDs.

What are LEDs?

LED is a term that’s floating around everywhere now and it stands for light emitting diode. LEDs are the size of a fleck of pepper and combine red, green and blue light to create white light. They emit light in only one direction, which reduces the need for reflectors and diffusers, making them appear brighter and more efficient because they’re losing less light in the process.

LED cost chart

Almost every illuminated sign designed recently is using LED bulbs because so many people have realized how much money (and energy) they can save by making the switch. A study by Goldman Sachs Global Investment Research showed that LEDs were already the cheapest lighting technology in 2014 and are poised to see a further 38% cost decline by 2020.

Where You Can See Cost Savings by Switching to LEDs


Lower Energy Bills

The news that LEDs typically use significantly less energy than traditional bulbs has been circulating around popular culture for a few years now. Knowing that the standard for most business signs in the past has been to use CFL bulbs, you can estimate the annual savings you could experience provided by

LED cost comparison

*Based on 2 hrs/day and an electricity rate of 11 cents per kilowatt-hour

This means your energy bill will be slashed, and you can spend more money on other aspects of your business. If you’re considering an illuminated sign, LEDs are the option that will get you the most bang for your buck when it comes to energy efficiency.

Programs and Rebates

There is a possibility of business rebates for switching to energy-efficient LED lights. The rebates vary based on whether you are retrofitting or replacing, how big your project is, and what type of bulbs you’re replacing it with—but will usually add up to a good chunk of change. A lot of the time, you can cover the cost difference between LEDs and other lights with the rebate.

Fewer Bulb Replacements

LED bulbs will last much longer than other bulbs. As you can see in the chart above, CFL bulbs will last you roughly 10,000 hours. LEDs, on the other hand, will last 25,000 hours. That’s a big difference, and the cost savings will add up when you’re not replacing bulbs every year or two.

More Visibility

If you don’t have an illuminated sign yet, there can be added benefits involved that go beyond switching to LEDs. Illuminated signs are visible at night, so you can attract customers even while you’re sleeping! The illumination allows passersby to see the sign at all times of the day (and night), so it really is a 24/7 salesperson for your brand. Those extra eyes that see your sign after dark could be your next customer.

According to a study by Villanova University, lighted on-premise signs create a competitive advantage for businesses (5.7 out of 7 on a Likert scale). When you equip your sign with LEDs, the cost of energy is so low that you can use higher-watt bulbs, so your sign can be visible from even farther away.

Switching your illuminated sign to LEDs can save your company a lot of money over time. Calculate your estimated savings with an LED Savings Calculator to see an estimate of how much your savings can accrue overtime, and talk to an expert to see what kind of rebates you can get from your local utility provider. Our team of experts are ready to help you with your LED sign need — contact us today!


Patrick Woller ""

Patrick Woller

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Patrick is a Graphic Designer at Spectrum Signs, a custom business sign maker in Blaine, MN. After a call from his college placement office, Patrick joined the Spectrum Signs team in 2010. Patrick finds enjoyment in the unique challenges his job gives him through the use of out of the ordinary materials. When Patrick isn’t designing signs, he enjoys spending time with his wife and daughter, hiking with his dog Willis, and getting out on the golf course.

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