Every lighting conversation eventually gets to this question, so let's just answer it properly instead of doing the thing every other site does and telling you "LED is better" like that settles it.
The Actual Numbers
Halogen downlights typically run at 35–50 watts each. An equivalent LED does the same job at roughly 5–10 watts. Multiply that by however many downlights are in a typical living area — ten, fifteen, twenty — and the running-cost gap isn't subtle over a year, let alone over the 15–25,000 hours an LED is rated to last versus roughly 2,000 hours for halogen.
That lifespan gap matters more than it sounds. A halogen bulb in regular use might need replacing every year or so. An LED fitting, done properly, can outlast the time most people stay in a house.
Where Halogen Still Has a Point
Halogen's upfront cost per fitting is lower, and the light itself has a warmth some people genuinely prefer over cheaper LED options (though good LED has closed that gap a lot in the last several years). If you're renovating on a tight budget and won't be in the house long enough to recoup the LED saving, halogen isn't a foolish choice — it's just usually not the cheaper one over time.
The Heat Difference Actually Matters
Halogen downlights run hot — hot enough that they need real clearance from ceiling insulation, and that clearance requirement is exactly the kind of thing that gets ignored when someone does a quick DIY swap. LED runs cool enough that it's a much smaller compliance headache, and a genuinely lower fire-risk profile in an insulated ceiling.
What Actually Changes at Install Time
Swapping a bulb is not the same job as swapping a fitting. Some older halogen setups run through a transformer that isn't compatible with a straight LED replacement — in that case, the whole downlight assembly needs changing, not just the globe. That's the detail that turns a "quick fix" into an actual electrical job, and why we check the existing setup before quoting rather than assuming a bulb-for-bulb swap will work.
The Honest Verdict
For most homes doing a genuine upgrade, LED wins on running cost, lifespan, and heat safety — not close. The real decision isn't "LED or halogen," it's "is now the right time to spend on it," and that's a budget question, not a lighting one.
If you're planning a broader lighting upgrade, our Power Points, Lighting & Fans page covers what's actually involved, or you can get a free quote and we'll tell you what your existing fittings can and can't take.