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Costs

LED vs Halogen Downlights, The Real Cost Difference

📅 February 2026 ⏱ 5 min read ✍️ Nate's Rates Electrical, Newcastle NSW

The quick answer: LED downlights cost more upfront. Halogens cost more in almost every other way. If you have halogens still installed, converting is one of the most cost-effective electrical jobs you can do in your home.

Power Consumption

TypePower Draw
Halogen downlight50W (a few are 35W)
LED downlight (equivalent brightness)7 to 10W

A typical Newcastle home with 20 downlights running 4 hours a day uses about 4 kWh of halogens daily. LEDs at the same usage use under 0.7 kWh. At current rates the saving is around $350 to $450 per year.

Lifespan

TypeTypical Lifespan
Halogen2,000 hours (~18 months at 4 hrs/day)
LED25,000+ hours (15+ years at the same usage)

Add the cost of replacing dead halogens regularly, globes plus the occasional electrician callout for failed transformers, and the gap widens further.

Heat and Safety

Halogens get genuinely hot. The transformers run warm enough to scorch insulation if it's pushed against them. Most house fires that start in roof cavities trace back to halogen downlights with clearance issues. LEDs run barely warm to the touch and the fire risk effectively disappears.

Total Cost Over 10 Years

ItemHalogen (20 lights)LED (20 lights)
Initial install / conversion$0 (already there)~$1,000
Globe replacements over 10 years~$400$0
Power over 10 years~$4,000~$700
Total$4,400$1,700

Converting to LED saves around $2,700 over a decade on a typical 20-light home, plus eliminates the fire risk and removes the constant globe replacements.

💡 Dimmer note: If your existing halogens are dimmable, the wall dimmer is likely a leading-edge type that LEDs don't play nicely with. Plan to swap to a trailing-edge LED-compatible dimmer at the same time, otherwise you'll get flicker.

The Catch

There isn't really one. The only honest argument for staying with halogens is if the existing lights are in an unfinished or short-stay property where you genuinely never run them. For everywhere else, the maths is clear.

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