Few sign styles are as iconic as neon. For generations, businesses have used neon signs to attract attention and create memorable storefronts. While LEDs have become the modern standard thanks to their energy efficiency and low maintenance requirements, neon continues to be valued for its handcrafted appearance, authentic glow, and nostalgic appeal.
But are neon signs expensive to run? Traditional glass neon generally costs more to operate than LED signage, however, many business owners find its distinctive character well worth the additional expense.
Let’s go into more detail.
What is a neon sign?
A neon sign is an illuminated sign made from glass tubes filled with gases such as neon or argon. When an electrical current passes through the gas, it produces a bright, colourful glow. Although commonly referred to as “neon” signs, many use different gases and coatings to create a wide range of colours.
Traditional neon signs are handcrafted by bending glass tubing into custom shapes and letters. For decades, their distinctive glow and vintage aesthetic have made them a popular choice for businesses of all kinds, and in recent years, they have experienced a resurgence in popularity as interest in retro-inspired design continues to grow.
Are neon signs expensive to run?
Traditional neon signs are generally more expensive to run than modern LED signs, but they are not prohibitively costly. A small to medium neon sign typically uses between 50 and 150 watts, which translates to around 1.2 to 3.6 kilowatt-hours of electricity per day, if the sign is running continuously. On the other hand, a similar LED sign might use 50%-90% less energy than traditional glass neon.
As a rough ballpark, an LED sign might cost only $5.00 per month (about $0.20 per day) to run, compared to $15 to $35 per month (about $1 per day) for traditional neon. That said, estimates can vary and you should get quotes directly from the company you plan on working with.
However, the exact operating cost depends on several factors, such as the size of the sign, its brightness, how many hours it’s used each day, and local electricity rates. While energy costs for neon signs are typically modest, maintenance and repairs can add to the overall cost over time.
Let’s take a closer look at these factors:
- Sign Size – Larger signs require more lighting and consume more electricity.
- Operating Hours – A sign that runs 24/7 will cost more to operate than one used only during business hours.
- Brightness – Brighter signs generally require more power.
- Sign Design – Complex designs with longer tubing or additional lighting elements may increase energy consumption.
- Local Electricity Rates – Operating costs vary depending on utility prices in your area.
- Maintenance Needs – Neon signs tend to require more maintenance and repairs over time.
Is neon worth it?
Whether or not neon is worth it depends on what you’re trying to achieve. From a purely cost perspective, LED signage is the more practical option thanks to its lower energy use and minimal maintenance requirements. However, traditional neon still offers something that LEDs can’t fully replicate – the warm, handcrafted glow and vintage character that can make a storefront stand out. For many businesses, neon is worth it not because it’s the cheapest option, but because of the atmosphere and visual impact it creates.
If brand identity and aesthetic appeal are a priority, neon can still be a worthwhile investment, despite the higher long-term costs.
What is LED neon flex tubing?
LED neon flex tubing is a modern alternative to traditional glass neon. Instead of using glass tubes filled with gas, it uses flexible silicon or PVC tubing with LED lights inside to create a bright, glowing effect. It’s designed to mimic the look of classic neon while offering improved durability, energy efficiency, and easier installation.
LED neon flex is often considered the best of both worlds. It delivers the same bold, continuous glow as traditional neon while using significantly less energy and requiring far less maintenance. Essentially, it captures the iconic aesthetic of neon signage but with the practicality and efficiency of modern LED technology.
Ready to bring your vision to life? Contact us today at National Neon Signs to start creating your custom LED or neon sign.

