What are the economic advantages of using LEDs over conventional light sources?

Although the initial cost of conventional light sources is less than LEDs, they do not take into account the operational and maintenance cost of the lighting system. LEDs, having a longer life, reduce maintenance and lamp replacement cost. This reduces cost of labour to replace lamps and the cost of new lamps at the end of lamp life cycle. LEDs, also consume less energy. Thus the overall cost of a LED system can thus be significantly lower than conventional lighting systems. Most applications with LEDs offer a payback period as low as 3-4 years.