Nojima Corp, a Yokohama-based chain of home appliance stores, has released its own line of LED, or light-emitting diode, lights that until the end of August will be priced at 980 yen each--less than half the average market price.
In late May, domestic sales of LED Tube lights at major retailers surpassed those of filament light bulbs for the first time.
With such strong demand, LED prices will likely continue to fall, industry observers said.
Nojima's ELSONIC line of LED lights usually sell for 1,480 yen each, but the company said it decided to reduce the price for a limited period of the initial release to attract consumers who are newly interested in reducing their electricity usage.
According to GfK Marketing Services Japan Ltd, a market research firm, between May 23 and May 29 major retailers sold about 2.9 times as many LED devices as in the corresponding period last year.
LED devices accounted for more than 40 per cent of all lights sold in May, outdoing filament bulbs and fluorescent bulbs.
To meet the boom, LED manufacturers have scaled up production.
Panasonic Corp has increased production in Indonesia and China in recent months, and Toshiba Corp has increased output at its domestic plants to full capacity.
Some companies have newly entered the LED manufacturing business. Ricoh Co, a manufacturer of office equipment, will launch its own line of T8 LED Tube lights in July.
LED lights consume less electricity and last longer than filament bulbs.
According to Panasonic, an LED light can be used for about 40,000 hours, 40 times longer than a filament bulb, and consumes about 80 percent less electricity.
Although an LED light costs more than a filament bulb, over time the savings made on electricity bills can be dramatic.
LED is regarded as the fourth generation of domestic lighting technology, following candles, filament bulbs and fluorescent lights.
Bulb-shaped and tube-style LED lights are available, so they can be used in place of filament or flourescent devices.
The higher purchase price of LED lights has been an obstacle to their proliferation, but the price gap is quickly narrowing.
Last month, the average price of LED devices was about 2,300 yen, down more than 20 per cent from May last year.
The introduction of lower-priced models like Nojima's will likely further push down the market average, tempting more households to use LED.
The business sector itself could provide a big boost to the LED market, as many companies have introduced or plan to introduce LED lights as the main means of lighting their commercial buildings as they try to cope with expected power shortages this summer.
Using LED devices enables workplaces to use less power without compromising on light levels, which could reduce efficiency.
Keikyu Corp on Wednesday began installing about 1,100 LED lights at its railway station in the domestic terminal at Haneda Airport.
Seven-Eleven Japan Co has introduced LED lights for floor lighting and illuminated sign boards at about 5,000 of its stores within the service area of Tokyo Electric Power Co. The convenience store operator expects to lower its electricity consumption in summer by 10 per cent from last year.
