Due to technological limitations, LEDs have a very high production cost. The production costs associated with LEDs is passed on to the consumer in the form of a high price tag.
LEDs are considered to be “energy-efficient lights,” which means that they have a generous light output for the amount of power they need to operate. The high initial cost of LEDs is offset by the amount of power they save the consumer in the long run.
According to EarthEasy.com, researchers at Purdue University have found a way to replace the sapphire-based technology in LEDs with silicone wafers. This newer technology promises to decrease the production costs and overall price tag associated with LEDs.
Unlike incandescent and halogen light bulbs, LEDs do not employ the use of a filament. LEDs emit light when an electric current is drawn between two electrodes. This technology is more efficient, yet more costly to produce than traditional filament technology like that used in incandescent and halogen light bulbs.
Because they are so small, LEDs are often clustered in groups of as many as 180 to create a device that produces a desired amount of light output. An LED that would take the place of a 100-watt incandescent light bulb requires a clustering of several small LEDs to be as effective. This is just one reason why an LED equivalent to a 100-watt incandescent will cost more.