LED vs. Neon Signs: Which One Actually Saves Energy (and Money)?

  • LED signs use up to 80% less energy than traditional neon signs, reducing both costs and environmental impact.
  • LEDs last over 50,000 hours on average, several times longer than neon’s 10,000–15,000 hour lifespan.
  • LED signage offers safer operation, cooler temperatures, and flexible design options without hazardous materials.
  • Though traditional neon can have nostalgic appeal, LED signs are more durable, efficient, and budget-friendly in the long run.

Both LED and traditional neon signs light up storefronts with vibrant color and style, but when it comes to energy efficiency, cost savings, and environmental impact, one option clearly stands out. In this guide, we’ll explore the main differences between LED vs. neon signs, how each type works, and why more businesses are switching to modern LED signage for a cleaner, greener glow.

Understanding the Two Types: Traditional Neon vs. LED Neon

At first glance, LED neon and glass neon signs might look similar. Both create colorful illuminated signage that can be shaped, bent, and mounted into stunning designs.

But the technology behind them is quite different. Traditional neon signs use glass tubes filled with inert gases like neon or argon, while LED neon signs use flexible acrylic tubing with energy-efficient LED lights inside. This difference in materials, heat, and power use makes all the difference in energy efficiency and safety.

Energy Efficiency and Power Consumption

Traditional neon tubes require high voltage—around 15,000 volts—and consume roughly 20 watts per linear foot. That’s a lot of power, especially for large outdoor signage or commercial displays.

In contrast, LED signs use low-voltage direct current (DC) and draw just 1.5 to 3 watts per linear foot, offering energy savings of up to 80%. They stay cool to the touch, converting nearly all their power into visible light rather than heat. This energy efficiency makes LED technology the better option for environmentally friendly, cost-effective business signage.

Environmental Impact and Materials

Beyond power use, what’s inside the sign matters. Traditional glass neon signs rely on gases and small traces of mercury to achieve certain colors. These materials make disposal tricky and can increase environmental risk. LED neon signs, on the other hand, use solid-state LED technology housed in lightweight, shatter-resistant acrylic. They contain no mercury, no gases, and generate less waste over their lifetime, making them a safer, more sustainable choice for the future of illuminated signage.

Lifespan, Durability, and Maintenance

Neon signs generally last about 10,000 to 15,000 hours before dimming or requiring refills of their neon gases. They’re fragile, sensitive to weather, and the glass tubes can crack if mishandled.

LED signs are far more durable and lightweight, lasting over 50,000 hours on average with minimal maintenance. The flexible tubes, solid-state parts, and durable acrylic design allow LED signage to withstand shipping, vibration, and outdoor conditions without issue. That longevity translates directly into cost savings over time.

Total Cost of Ownership

When comparing LED vs. neon, the initial cost of a glass neon sign can seem lower—but that changes fast. Between higher electricity bills, frequent maintenance, and shorter lifespan, traditional neon costs more in the long run. LED neon signs offer major cost savings thanks to their energy efficiency, durability, and reduced need for repairs. A typical LED sign running 12 hours a day may cost only one-fifth as much to power as a comparable neon sign. The combination of lower power use, fewer service calls, and longer life makes LEDs the smarter financial and environmental choice.

Visual Appeal and Customization

LED neon signs have come a long way. They now mimic the warm, authentic glow of glass neon while offering incredible versatility in color, shapes, and design. LED tubes can be bent and mounted into any final design you can imagine—letters, logos, or intricate artwork—without the safety risks of fragile glass or hot surfaces.

Whether you’re creating illuminated signage for a storefront, restaurant, or event space, LED lights provide unmatched brightness and flexibility with minimal risk.

Why LED Signage Is the Better Option

When you weigh all the differences—from energy efficiency and safety to maintenance and cost—LED technology easily outshines traditional neon. For businesses aiming to reduce their environmental impact and operating expenses, LED signs are the clear winner. They’re brighter, cooler, longer-lasting, and more environmentally friendly, making them a future-proof investment in your brand’s visibility.

Excel Lighting & Signs: Your Local Experts in Energy-Efficient Signage

At Excel Lighting & Signs, we help businesses upgrade to modern, eco-conscious LED signage that stands out day and night. Whether you’re installing new LED signs or retrofitting existing neon signage, our professional team delivers energy-efficient, durable results that look great and perform even better. We create custom illuminated signage for storefronts, outdoor spaces, and commercial buildings—all designed for maximum brightness, flexibility, and cost efficiency.

Ready to Make the Switch?

Thinking about replacing your old neon tubes with energy-efficient LED lights? Excel Lighting & Signs makes the process simple.

From design and fabrication to installation and maintenance, we’ll help you choose the perfect solution for your space, budget, and long-term goals. Contact us today to learn more about LED sign installation, lighting retrofits, and sustainable signage solutions near you.

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FAQs: Neon vs. LED Signs

Is LED better than neon?

Yes. LED neon signs use far less energy, last longer, and are safer and more durable than traditional neon signs. They offer the same bright look with better energy efficiency and lower maintenance costs.

How to tell if a sign is neon or LED?

Look closely at the tubing. Glass neon signs have fragile glass tubes that get warm and often flicker slightly. LED neon signs use flexible acrylic tubing and stay cool to the touch with a more consistent brightness.

Why don’t we use neon lights anymore?

Neon lights are less energy-efficient, require hazardous gases, and need frequent maintenance. LED technology has replaced them because it’s safer, more reliable, and much more energy-efficient.

Does neon last longer than LED?

No. Neon lights generally last around 10,000–15,000 hours, while LED neon signs can run for 50,000 hours or more before needing replacement.

Which is better, neon or LED?

LED is the better option for most modern signage. It’s energy-efficient, environmentally friendly, and flexible in design—ideal for both indoor and outdoor signage applications.

Does LED last longer than neon?

Yes. LED lights have a much longer lifespan and maintain brightness for years without requiring gas refills or glass repairs like traditional neon signs.

Why don’t people use neon signs anymore?

Many businesses are moving away from neon because it’s fragile, uses more energy, and poses environmental challenges. LED neon offers the same colorful look with far greater energy savings, safety, and durability.

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