Rebates to cut price of $60 LED bulb
AP Technology Writer
NEW YORK (AP) — How much would you pay for an amazing, state-of-the-art light bulb? Shoppers will be asking themselves that very question at Home Depot and other outlets starting Sunday — Earth Day — when the bulb that won a $10 million government contest goes on sale.
The bulb is the most energy-efficient yet, lasts about 20 years and is supposed to give off a pleasing, natural-looking light. But what separates it from the pack most is the price: $60.
That price reflects the cost of the components, especially the top-notch chips, or diodes, that give off the light, and is the price commercial customers will pay. But the manufacturer, Netherlands-based Philips, is discounting it right away to $50 for consumers, and working on deals with electric utilities to discount it even further, by as much as $20 to $30.
This means the bulb will cost anywhere from $20 to $60, depending on where it's found. Online, consumers will be paying $50 for each bulb, because utilities don't subsidize online sales.
Congress launched the L Prize contest in 2007, with the goal of creating a bulb to replace the standard, energy-wasting "incandescent" 60-watt bulb. The requirements were rigorous, and Philips was the only entrant. Its bulb was declared the winner last year, after a year and a half of testing. The contest stipulated that the winning bulb be sold for $22 in its first year on the market.
In that context, the $60 price tag has raised some eyebrows. Ed Crawford, the head of Philips' U.S. lighting division, said it was always part of the plan to have utility rebates bring the price down to the $22 range.
Utilities already offer rebatehe goading of the prize, he said.
The race is now on to produce LED bulbs that produce 100 watts worth of light. The incandescent equivalents are no longer made or imported, victims of a federal ban that kicked in at the beginning of the year. They're now starting to disappear from store shelves. Squeezing enough LEDs into a bulb-sized space to produce that much light is a big technical challenge — LEDs generate heat, which destroys them over time unless they're well-cooled.
Incandescent bulbs of 40 watts and above will be banned in 2014.