LED lighting uses significantly less energy than traditional lighting like halogen lamps, reducing energy bills. An LED lamp using 5W of power to run costs around £2 per year to operate, compared to £21 for a equivalent 50W halogen lamp. LEDs are small light bulbs in an electrical circuit that do not get hot and have no filament to burn out, making them very inexpensive to use long-term. Understanding LED lighting means appreciating how it saves on energy and money through its low-power operation and lack of maintenance needs compared to other lighting types.