Does Neon Use a Lot of Electricity? Debunking the Energy Myths Around Neon Lighting
- kmseeberg
- Mar 5
- 3 min read
There is a common assumption that real neon lighting is expensive to run and is therefore unfavourable compared to other options such as LEDs .
Energy concerns are very valid, especially for businesses using illuminated signage long-term.
Real neon is actually much more energy efficient than many people have assumed or been lead to believe.
This post will cover: neon's actual energy usage, comparisons with other lighting types and ways to optimize neon efficiency.
How Much Electricity Does Neon Actually Use?
A sign that is 1 metre in length requires about 90-100 watts (about the same as the common incandescent lightbulb)
The amount of electricity needed for a neon sign depends on the size of the sign; bigger sign = bigger wattage.
It's important to note that while the energy consumption of a neon sign isn't nothing, modern neon signs are built with energy efficiency in mind
Neon vs LED: Which Uses Less Power?
LEDs use less raw wattage than neon, however, the difference is much smaller than what is often assumed
Real neon has a much more efficient ratio of energy consumption to light emitted than its LED flex counterpart
This contributes to real neon's status as an iconic and reliable lighting solution, as opposed to LEDs, which amount to a short term minor cost-saving in comparison
It is a myth that neon overheats. A neon ironcore transformer however does reach high temperatures and should be installed in a well ventilated space
Factors That Affect Neon's Energy Usage
Transformer: An ironcore transformer is a heavy duty and long lasting power supply that draws a large amount of energy as opposed to an electronic transformer, which won't last as long but compensates this with its much more efficient energy usage.
Gas used: Neon sections that contain neon gas draw roughly 15% more power than sections that contain argon gas. Neon gas is used for warm colours (reds, oranges etc.) and argon is used for cooler colours (blues, greens etc.)
Usage patterns: A sign that is operating 24/7 understandably uses more power than one that does not. Consider running your sign on a timer that will turn on the sign only at designated times during the day to save energy costs.
The Bigger Picture: Cost vs Impact
A standard neon sign running 8 hours a day costs no more than $10 per month
The long-term branding value of a real neon sign will more than compensate its cost in energy and money
An LED flex sign, while technically demanding less energy, will in turn demand less attention to your business as opposed to a real neon sign. They are a dime a dozen these days and contribute very little in the ways of adding flavour to your brand and even less in the ways of art and culture. A real neon sign, however, uses its larger energy budget to great effect with its timeless and unmistakable visual charm and pure luminous force.
Additionally, despite requiring more energy to operate, neon is still the more financially and environmentally sustainable option, as it is longer lasting and made of recyclable glass. LEDs, however, are made of weak and disposable plastic that is not recyclable and are fated to join the ever growing mound of waste polluting our planet
FAQs About Neon and Electricity
Is neon safe to run all night?
Yes - as long as it is installed correctly with the appropriate transformer
Can I reduce energy use without losing brightness?
Yes - using an electronic transformer will reduce the energy costs without affecting the glow of your sign
Does a larger sign use significantly more power?
Generally speaking, yes. A sign will require more power the more neon sections it has.
Can I use solar power with neon?
Yes, using a system that utilises battery storage
Final Thoughts: Neon Lighting Is Surprisingly Efficient
Real neon is not the energy hog that it is often made out to be; it is actually very efficient
It strikes a very effective balance between performance, durability and low running costs
Curious about how much energy your neon is really using? Book an energy assessment with a Melbourne neon expert today.

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