The US Government is investing $10.5 million (£7.4m) in energy efficient lighting research and development.
The nine projects that won funding are expected to help accelerate the development of LEDs that can significantly cut energy costs.
According to the Department of Energy, today’s most advanced LED products are around 10 times more energy efficient than conventional lighting and last 25 times longer.
It has set a target to increase the efficiency of LEDs by an additional 66%.
Energy Secretary Ernest Moniz said: “Solid-state lighting research and development has contributed to more than $2.8 billion (£2bn) in US energy cost savings over the past 15 years and further improvements in the technology will increase those savings even more in the years to come.
“By 2030, solid-state lighting could reduce national lighting electricity use by nearly half—which would equate to the total energy consumed by 24 million American homes today and could save American families and businesses $26 billion (£18.2bn) annually.”