The light bulb has undergone quite a makeover in recent years, and the next big upgrade is at hand. Compact fluorescents may be moving over for the new bulb in town: LED (light emitting diode). 

According to iSuppli, a semiconductor research company, LED sales for residential lighting will increase by double digits in the next three years. In part, that’s because of a 2007 law that requires energy-guzzling incandescent bulbs to be completely phased out by 2012. Companies, like Lemnis and Sylvania, are hoping LED will take their place as the first choice in home lighting. 

From the apt bulbous shape of incandescent bulbs to the spiral shape of compact fluorescents, each change has been designed to increase efficiency and decrease power expenditures of the light bulb. 

Cutting a bulb’s energy costs has significant implications on our nation’s energy consumption habits. Lighting accounts for 11 percent of the average U.S. household’s energy use: Cutting back here could mean significant savings. Fluorescents use less energy to create the same output as incandescent, hence their increasing popularity.

LEDs go one better, though. An LED 60-watt replacement bulb only consumes 6 watts of electricity, an incredible savings. Yet while LEDs have been popular in such products as flashlights, televisions and streetlights, they have not been used with any regularity as a residential lighting source. 

Price has been the major issue. The 60-watt replacement bulb, manufactured by Lemnis, costs $50. Orsam Sylvania created a 40-watt replacement that sells for $35. 

“While the retail prices for LED light bulbs are still about an order of magnitude higher than those traditional incandescent lamps, customers increasingly are becoming aware of the power savings and long life benefits of solid-state LED lights,” says iSuppli. 

Still, the growing awareness of energy’s high cost could drive many users to consider the new technology. In a recent survey, about half said price was a key consideration in their decision. Despite this, 74 percent of consumers switched from incandescent to more efficient light bulbs. Twelve percent started using LED, which is promising for Lemnis, Sylvania and other manufacturers.

Consumers are already seeing benefits. Life Taylor, who decorates his home with 11,000 to 12,000 bulbs for Christmas, says that switching to even a few LED bulbs has substantially trimmed his electric bill this year. “Last year my meter was going around 23 times a minute, and now [with a few LED bulbs] its doing 17 this year.”

LED manufacturers are hoping other consumers will see the savings and opt for the new bulbs all year round.