For the environmentally conscious holiday reveler, LED Christmas lights can offer the best of both worlds. That use less energy, but last longer than regular electric bulbs, and while they may cost more, it doesn't take more than a few years to regain that cost in lower electricity use and less replacement of bulbs. Decorations indistinguishable from regular light bulbs with a distinctively "green" feeling.

Dave Vance, owner of Handi Rental in Genoa Township, which offers a "Santa's Light Crew" light installation service every holiday season. He said he switched to LEDs two years ago, the LEDs do cost a little more, but the payback is two or three years just on the energy, I think everyone else is thrilled with the energy savings and the looks of the LEDs, people understand that it pays for itself.

According to the related analysis, if all homes in the country used LED holiday lights, the energy savings would equal 2 billion kilowatt hours or enough to power 200,000 homes for one year.

Not just homeowners are getting in on the savings, though. After having started switching to LED holiday lights a few years ago, 2008 will be the first year that the city of Ann Arbor will use LEDs exclusively in all of its holiday lighting displays across the city. It’s said that the city has 114,000 LED holiday bulbs, and saves $7,000 annually by using them. And from a global warming perspective, it's the equivalent of taking a dozen cars off the road.