Why do LEDs cost more than conventional (incandescent and fluorescent) lights?
Although prices have declined significantly in recent decades as LEDs become more widely used, LED lights still cost more than conventional lights. There are several reasons for the higher cost. LED modules are made of packaged electronic components including semiconductor chips, phosphors, silicone, covers, and wiring. These components are more expensive than those of conventional lights. LED setups also generally require an AC to DC driver and a metal heat sink.