LED, which stands for light emitting diode, is a concept whose time has come. An LED light bulb produces on 3% of the heat of an incandescent light bulb, and typically it uses less than 10% of the total electricity. So, as you can see, this type of bulb would contribute hugely to decreasing our use of power. That’s power to run power plants (oil, gas, coal).
The unit price of an LED bulb is about 10 times the cost of a CFL twist bulb (60 watt). It seems to be sticker shock which prevents people from purchasing LEDs as much as we would like. However there is a point to be made here as far as cost. Looking at this another way, the LED is actually less expensive. Over the course of 50,000 hours, the LED is actually cheaper! Use this comparison: LED $95.95, CFL $159.75, and incandescent bulb $652.50. Quite simply, one does not have to replace LEDs as often!
This article discusses how LEDs work, how an LED is constructed (with diagram), why LEDs use so much less energy, what average power savings are, and what is being done to try to bring down the cost even more. Try reading: