Halogen will be phased out and new standards set for digital signage displays under tougher national standards agreed with industry and announced on Monday.

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Longer-lasting LED bulbs use significantly less electricity, won’t burn your fingers like traditional light bulbs, and are widely used for Christmas displays and smart lighting kits.

Since the early 2000s, Australia has replaced about half of its traditional incandescent tubes and bulbs with LED lights.

Swapping the final half could save $8 billion a year and avoid nearly eight million tonnes of emissions, according to Assistant Minister for Climate Change and Energy Jenny McAllister.

“Calculations show that by switching 10 halogen lamps to LED lamps, Australian families could benefit up to $229 a year,” she said.

Over ten years, the average household would be $2138 better off from greater energy efficiency and bulb replacement costs, and avoid an estimated three tonnes of carbon emissions.

The Sydney Opera House uses over 15,500 light bulbs each year and in 2014 replaced hundreds of incandescent light bulbs with 355 custom-made LED lights that each have a life-span of 50,000 hours.

This slashed the power bill by around three quarters for an estimated savings of around $75,000 a year, according to data released by the federal energy department.

Lighting Council Australia commended the federal government for what it said was a “commonsense approach” on phasing out inefficient halogens where there was an LED alternative available on the market.

“Customers are becoming more and more aware of what light bulbs provide them both the best bang for their buck and are the most environmentally friendly,” the industry body’s chief executive Malcolm Richards said.

LED lighting is ten times more efficient than halogen or incandescent lights and up to four times more efficient than compact fluorescent bulbs.

“This is even more important at a time when all Australians are keeping a close eye on their energy bills,” he said.

New minimum energy performance standards will be set for washing machines and dishwashers and increased for computer monitors and television screens.

By Marion RAE, AAP