In this guide
Converting halogen downlights to LED is one of the few electrical jobs that pays for itself, and the running-cost saving is not even the main reason to do it.
The numbers
A halogen downlight draws around 50 watts. An equivalent LED draws seven to ten. In a house with twenty downlights running four hours a night, that is roughly 1kW versus 0.16kW — the difference across a year is real money, and it is one of the few upgrades where the payback is measured in a couple of years rather than a decade.
| Halogen | LED | |
|---|---|---|
| Power per fitting | ~50W | ~7–10W |
| Typical lifespan | 2,000–4,000 hours | 25,000–50,000 hours |
| Heat output | High — a genuine fire risk in a ceiling | Low |
| Insulation can cover it | No — clearance required | Yes, if IC-rated |
The real reason: your insulation
This is the part that gets left out of most conversations about LEDs, and it is worth more than the lighting saving in most Melbourne homes.
Halogens run hot enough to be a genuine fire risk sitting in a ceiling. Because of that, they must be installed with clearance around them, and insulation is not permitted to touch them. So in a typical halogen-lit ceiling you have twenty holes in your insulation blanket, each one deliberately held clear.
Every one of those is a route for your heating to escape into the roof space in winter, and for roof heat to come down in summer. People spend a lot on insulation and then leave twenty gaps in it.
An IC-rated LED downlight is certified to be covered by insulation. IC-4 additionally means it can be abutted by insulation on all sides.
Fitting IC-rated LEDs means the insulation can finally be closed up over the top. In a well-insulated home, that improvement to how the house holds heat frequently exceeds the lighting saving — and it is the thing most quotes do not mention. Ask whether the fittings being quoted are IC-rated.
What it costs
In most homes the LEDs go straight into the existing holes, so there is no plaster damage and no making good. That keeps it quick and it is why the per-light cost drops considerably when several are done in the same visit — most of the cost is access and setup, not the individual fitting.
As an indication, expect somewhere in the region of $80 to $150 per light installed for a straightforward swap, with the lower end applying when you are doing a whole house at once. Awkward ceilings, shallow cavities, non-standard hole sizes and anything requiring new cable will move it. Try the cost estimator for a ballpark.
Choose the colour temperature before you commit
This is the decision people most often regret, because it is very obvious once twenty of them are in and very annoying to change.
- 2700K–3000K (warm white). Living areas, bedrooms, anywhere you want the room to feel comfortable. This is closest to the halogen light you are used to.
- 4000K (neutral white). Kitchens, bathrooms, laundries, garages — anywhere you need to see properly.
- 5000K+ (cool white). Workshops and task areas. In a living room it looks clinical.
Do not mix temperatures across an open-plan space; it reads as a mistake. And if your existing lights are already mismatched because they have been replaced one at a time over the years, doing the whole area at once fixes something you have probably stopped consciously noticing.
Colour rendering: the spec nobody mentions
CRI, or colour rendering index, measures how accurately a light shows colour. Cheap LEDs sit around 80, which makes timber, stone, fabric, artwork and food look slightly flat and grey.
CRI 90 or better costs a little more per fitting and the difference is immediately visible in a kitchen or any room with something on the walls. If you are doing a whole house, it is worth specifying.
Dimming: where installations go wrong
LED dimming is genuinely fussy, and it is the most common complaint we are called out to fix. The wrong dimmer with the right fitting produces flicker, an audible buzz, or a floor below which the lights simply switch off.
LEDs generally need a compatible trailing-edge dimmer, and even then not every driver-and-dimmer combination behaves. An old leading-edge dimmer left in place from the halogen era is the single most common cause. Matching them properly is the difference between dimming that works and dimming that irritates you every evening.
Things that complicate the swap
- Non-standard hole sizes. Most LEDs come in common cut-out diameters, but if your halogens are an unusual size you may need a trim plate or a slightly enlarged hole.
- Shallow ceiling cavities. Common in older cottages and in double-storey terraces between floors. Some fittings simply will not fit, so cavity depth should be checked before you buy a box of them.
- Concrete ceilings. Apartments with concrete slabs cannot take recessed fittings at all. Surface-mount or track is the answer there.
- Transformers. Old halogen transformers should be removed rather than left sitting in the ceiling.
- Bad original layout. If your downlights were installed in an even grid, the swap is a free opportunity to relocate a couple while the ceiling is open. Light belongs over the bench and the sink, not spaced evenly like a car park.
For local detail see LED downlight installation in Melbourne, or your suburb: Yarraville, Williamstown, Newport, Brighton and others.
Common questions
How much does it cost to convert halogen downlights to LED?
Roughly $80 to $150 per light installed for a straightforward swap into existing holes, with the lower end applying when a whole house is done at once. Most of the cost is access and setup rather than the fitting itself, which is why doing several together is much better value.
Can LEDs go straight into my existing halogen holes?
In most homes yes, with no plaster damage. Complications are non-standard hole sizes, which may need a trim plate, and shallow ceiling cavities that some fittings will not fit into. Both are worth checking before buying a full set.
What does IC-rated mean and why does it matter?
An IC-rated LED downlight is certified to be covered by insulation. Halogens required clearance, so a halogen-lit ceiling has a gap in the insulation at every fitting. Switching to IC-rated LEDs lets the insulation be closed up, which in many homes saves more on heating than the lighting saving itself.
Why do my LED downlights flicker when dimmed?
Almost always a dimmer mismatch — commonly an old leading-edge dimmer left over from halogens. LEDs generally need a compatible trailing-edge dimmer, and even then not every driver and dimmer combination behaves. Matching them properly fixes it.
What colour temperature should I choose?
2700K to 3000K for living areas and bedrooms, 4000K for kitchens, bathrooms and garages where you need to see properly. Do not mix temperatures across an open-plan space. Decide before the install, because changing twenty fittings afterwards is expensive.
Are LED downlights worth it if my halogens still work?
Generally yes. Halogens use around five times the power, fail far sooner, and run hot enough to require gaps in your ceiling insulation. The combined saving on running cost and heating usually pays back within a few years.
Written by the team at Litmec Electrical, licensed electrical contractor REC-10383, trading in Melbourne since 2007. Last reviewed 12 August 2026. General guidance only — every property is different, and our quotes are free.