One of the reasons why LEDs are so efficient is that they do not release much of their energy as heat. With an incandescent bulb, almost 90% of the energy is spent producing heat and not light. Even CFLs release about 80% of their energy as heat. By comparison, LEDs spend most of their energy emitting light and very little heat. LED lighting uses about 90% less electricity than traditional incandescent bulbs. About 35 to 40% of total energy costs for the average household are spent on lighting. If it costs $80 a month to light your house using incandescent bulbs, replacing them with LEDs will bring it down to about $16 per month. These energy savings add up over time. If you consider a business like an office that has the lights on all the time, switching to LED lighting can have a big impact on operating costs. LED lights are also an excellent choice for battery-powered devices because they can help the battery last longer. LED lighting is also an excellent choice for outdoor lighting or an area of the home that you wish to stay lit all the time.