The decrease in electricity usage can actually have a double benefit in some situations.
LED lights are often eligible for rebates and other cash incentives provided by governmental agencies and public utilities, thereby greatly reducing their cost of ownership. Another economic advantage of
LED lighting for businesses is that due to their long lives, the initial cost can be capitalized on a companys balance sheet and depreciated over a period of five to ten years. This is an important feature for publicly-traded companies because it can significantly decrease operating costs which, of course, increases reported net income.
The reduction in energy use has another benefit. As less electricity must be produced, less coal must be burned in coal-fired power plants to supply that electricity. A significant amount of electricity produced in the United States comes from burning coal. This means that as less electricity is used, less coal is burned, and therefore less carbon dioxide (a greenhouse gas), sulfur dioxide, nitrous oxides, and mercury are emitted to the environment. As a result, installation of LEDs leads to less pollution and a lower carbon footprint
