LEDs are made of electronic components that need to be packaged together to offer long lasting efficient light sources to the end user. Apart from the LED chip itself which has sapphire and gallium in the semiconductor, the process of packaging with materials like ceramic, rare earth phosphors, silicone, solder and gold wire add to the overall cost. White LEDs require further tests for calibration and standardization.
Although the initial cost of conventional light sources is less than LEDs, the operational and maintenance costs of LED are significantly lower. LEDs, having a longer life, reduce maintenance and lamp replacement cost. . Because LEDs need to be replaced less frequently, the owner spends less on new lamps and the labor needed to change them. LEDs also consume less energy; thus the overall cost of a LED system can be significantly lower than that of conventional lighting systems. Most applications with LEDs offer a payback period as low as three to four years.
LEDs have no gases, filaments and no moving parts to fatigue. They provide light through a one-step process that takes place within the diode. There is no glass to break or screwed contacts to loosen.