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LED lamps use considerably less electricity than incandescent or fluorescent light sources. For instance, a 5-to-7-watt LED light bulb is equivalent in brightness to a 60-watt incandescent bulb or a 15-watt fluorescent light. Installation of LED light bulbs has been touted by environmental conservationists as an easy way to reduce consumption without fundamentally changing human behavior. Moreover, unlike fluorescent and incandescent bulbs, LED bulbs do not contain mercury or any other toxic material.

Lower energy consumption also translates into lower utility costs for consumers. Although LED light bulbs are considerably more expensive to purchase than incandescent ones (approximately $15 versus $3 respectively), their long life-spans and low energy costs make up for this in the medium-to-long term. LED light bulbs last approximately 10 times longer than incandescent bulbs (about 60,000 hours).

LED light bulbs are directional, as light only emanates from the top half. As a result, LED light bulbs do not scatter light in all directions the way incandescent and fluorescent bulbs do. While LED light sources are ideal as directional light sources or spot lights, they are less effective as ambient light sources (even when using the general purpose varieties).