The Green Deal Initiative, which comes into effect on January 28th, is likely to result in the widespread uptake of LED lighting as businesses and homeowners across the country look to reduce their energy expenditure.

Lighting costs can be slashed by up to 90 per cent simply by switching from incandescent bulbs, and the government-backed initiative is urging people to take advantage of the scheme and make the switch.

The Green Deal offers loans for the installation of greener technologies, with all costs repaid through energy bills over a period of time, meaning no lump sum or upfront costs are incurred.

In addition, because the deal stipulates that loans will only be granted for upgrades which are expected to yield savings equal to or greater than the costs of the installation, customers are guaranteed an overall positive financial return.

However, a recent survey has indicated that 61 per cent of adults in the UK have never heard of the Green Deal, while only 17 per cent of employers said they realise that the deal also applies to them.

Of those who have heard of the initiative, 35 per cent said they do not understand how it works, although the majority of people who are both aware of the scheme and understand it said they are planning to make use of a Green Deal loan.

Amongst businesses planning to do so, LED lighting has emerged as the favourite upgrade option, with some 18 per cent choosing to make the switch from incandescent bulbs.

Even when compared to the strip fluorescent lights commonly found in factories and office buildings, LED bulbs offer a significant saving, which is why the government is encouraging not just homeowners but also businesses to take advantage of this opportunity and install energy-efficient lights.

Not only do they use a fraction of the electricity of older bulbs, but the colour and warmth of the light emitted is virtually indistinguishable.

LED lights can also be used with dimmer switches and are now being manufactured to fit into existing lighting fixtures.