Do Neon Signs Use a Lot of Electricity? Cost, Efficiency & Myths Explained

It's easy to assume that neon lights use a lot of electricity when we see that neon lights are actually very bright. The neon light is so bright that it can be seen even in daylight. And it seems logical that so much light can only be achieved by using so much energy. However, the reality is that neon lights are actually quite energy efficient compared to many other lighting technologies.

Operating Principle of Neon Sights 

The operating principle of neon lights is based on the excitation of gas molecules in neon tubes by electric current passing through them. When gas molecules are excited, they emit light. It is worth noting that this process does not create high temperatures like other traditional light sources such as halogen or incandescent lamps. Therefore, neon lights consume less energy and have higher efficiency.

In addition, new technologies such as LED (Light Emitting Diode) neon lights save even more energy. LED neon lights use small LED bulbs to create a neon effect, and they consume less energy than traditional neon lights. LED neon lights also have a longer lifespan, helping to save on maintenance and replacement costs.

However, it should be noted that the energy consumption of neon lights can vary depending on the size, design, and wattage of the specific light. To ensure maximum energy savings, choose neon lights that are certified for high energy efficiency and comply with your area's energy consumption regulations.

Do Neon Signs Use a Lot of Electricity?

The short answer: no, they don’t.

I’ve been working with neon for more than a decade, and this is one of the most common questions people ask me. The truth is, a properly built neon sign uses far less electricity than most people assume. In fact, a small neon sign, let’s say around three to four feet wide, draws about 60 to 100 watts. That’s roughly the same as an old incandescent light bulb, or even less if you compare it to some home appliances like a TV or a desktop computer.

Even larger commercial neon signs rarely push past 200–400 watts, which is still modest when you consider how bright and eye-catching they are. So while the glow looks dramatic, the energy bill isn’t.

👉 In other words: neon gives you maximum visibility without draining your electricity budget.

How Much Electricity Does a Neon Sign Use?

Let’s put some real numbers on the table.

A small neon sign (like the ones you might hang in a bedroom or home bar) usually draws about 60–100 watts. If you run that for 8 hours a day, it adds up to roughly 24 kWh per month. Depending on your local electricity rate, that’s just a couple of dollars on your bill.

A medium business sign, say 4 to 6 feet, may use 150–200 watts. Running that on the same schedule would cost somewhere in the range of $5–10 per month.

Even a large storefront neon rarely goes beyond 400 watts, which is less than many household appliances that people leave on without thinking, like air conditioners, microwaves on standby, or multiple light fixtures.

To give you a comparison:

• A desktop computer uses ~200 watts.
• A hair dryer can pull 1,000–1,500 watts.
• A fridge can run around 150–250 watts continuously.

So the neon? It’s pretty tame. The glow might look extravagant, but the power draw is surprisingly modest.

If it’s still unclear to you, let’s look at this table to see how a neon sign uses energy compared to other everyday appliances.

How Neon Signs Compare to Everyday Appliances

This shows at a glance that neon signs don’t use a lot of electricity compared to everyday household devices.

Factors That Affect Energy Consumption

Not all neon signs sip power the same way. After working with hundreds of custom builds, I can tell you the electricity use depends on a few key factors:

• Size of the Sign

Bigger tubes = more glass to light up = higher wattage. A small 2-foot sign might sit comfortably at 60 watts, while a long storefront piece could climb to 300–400 watts.

• Colors and Gas Type

Not all colors are equal. For example, reds and oranges made with neon gas are generally more efficient than blues and greens, which often use argon with a phosphor coating. The brighter or more exotic the shade, the slightly more energy it may require.

• Operating Hours

Leaving a neon sign on 24/7 versus only evenings makes a big difference in your monthly cost. That said, even continuous operation is cheaper than people expect.

• Transformer Efficiency

Modern electronic transformers are far more efficient and stable compared to older magnetic ones. A sign upgraded with a newer transformer not only saves electricity but also extends the lifespan of the tubes.

These factors combined explain why one neon sign might cost you less than a cup of coffee per month, while another (larger, colorful, left on all day) might add a bit more to your bill.

👉 But compared to other forms of lighting, neon still holds its own as surprisingly efficient.

Neon vs. LED Signs: Which Uses Less Electricity?

This is the comparison everyone makes, and for good reason. LEDs are often praised as the most energy-efficient lighting option, and in many ways, that’s true. But the story isn’t quite that simple.

An LED sign of the same size will usually use about half the electricity of a neon sign. For example, a medium neon might draw 150 watts, while its LED counterpart could use around 80 watts. Over time, that difference adds up, especially for businesses running signs 24/7.

But here’s what numbers can’t capture: the glow. Neon gives off a warm, continuous light that bends and curves with character. LEDs, even the best flexible versions, can look sharper and more “digital.” For a lot of shop owners, artists, or collectors, that authentic neon atmosphere is worth the modest increase in power usage.

There’s also durability to think about. High-quality neon can last 8–15 years with proper care, while LEDs may dim or have diode failures sooner. And since neon tubes are replaceable in sections, long-term maintenance isn’t always as costly as people assume.

👉 So, if you’re chasing absolute energy savings, LED wins. But if you want that iconic neon glow, the electricity cost difference is smaller than most people imagine, and often worth it.

Myths vs. Reality about Using a Neon Sign

Over the years, I’ve heard just about every misconception about neon signs. Let’s clear a few up:

Myth 1: Neon signs burn through electricity.

Reality: They’re actually pretty efficient. A typical neon sign uses no more power than a couple of light bulbs.

Myth 2: Neon signs are unsafe to leave on overnight.

Reality: High-quality neon is designed for continuous use. Businesses keep them glowing 24/7 without issues. The transformers regulate power and keep the system stable.

Myth 3: Neon signs are outdated technology.

Reality: Neon has been around for over a century, but modern tubes and transformers are more reliable and efficient than ever. “Old” doesn’t mean wasteful; it means proven.

Myth 4: Neon tubes are fragile and break easily.

Reality: While they’re glass, they’re built tough. Plus, once installed properly, they’re no more at risk than any other type of light fixture.

👉 In short, most of the scary stories you hear about neon are exaggerations. The truth is that neon is safe, efficient, and more durable than many people think.

Practical Takeaway – Will a Neon Sign Raise My Electric Bill?

Here’s the bottom line from someone who has seen thousands of signs lit up day and night: a neon sign won’t shock your wallet.

For home use, like a small neon in your bedroom or home bar, the cost is usually just a couple of dollars per month, less than one trip for bubble tea. You’ll barely notice the difference on your bill.

For businesses, even with larger signs, the expense is still modest. A medium storefront sign might add $5–10 a month if you run it every evening. If you’re open 24/7, the cost goes up, but not anywhere near what people fear. In fact, your air conditioning or a single fridge will outpace neon’s energy use easily.

The only time electricity becomes a real concern is when you’re running multiple large signs at once, in which case LEDs could offer more savings long-term. But for most owners, the added exposure, style, and atmosphere neon brings outweighs that small uptick in cost.

👉 Put simply: neon gives you a big impact at a surprisingly small price.

Conclusion

So, do neon signs use a lot of electricity? The answer is no.

A typical neon sign uses about the same power as a household light bulb, and even larger commercial signs stay well within a reasonable range. For most homes, the cost is just a few dollars a month. For businesses, it’s still modest, especially when you consider the attention and atmosphere neon brings.

Yes, LEDs are technically more efficient, but the difference isn’t as dramatic as people think. And unlike many modern lighting options, neon carries a timeless charm that LEDs can’t quite replace.