Now, LEDs are in short supply. ''Component lead times remain tight. A number of component vendors have told us that lead times remain fairly tight at 8-12 weeks,'' said Daniel Amir, an analyst at Lazard Capital Markets, who just returned from the recent LightFair International event.

''The supply situation is tight due to increasing demand from backlighting for TVs and general lighting markets,'' he said. ''Vendors expect this situation to persist until the end of the year at least.''

On the other hand, ASPs are dropping for LEDs. ''We have learned that prices have declined about 30 percent year-on-year on a lumen basis and should continue to drop as more supply comes to the market and performance improves,'' he said.

As a result, there are a plethora of LED projects. ''Many vendors at the show estimated that 200-plus large commercial projects were out for bids during 2010, up from (about) 50 or so last year,'' he said. ''Commercial lighting projects include warehouses, retail stores, hotels, restaurants and outside area or architectural lighting. Companies that are seeking LED solutions include Walmart, Albertson’s, Fedex, UPS, and others. Project sizes range from $2-to-$10 million and reflect ROIs in the range of 1-3 years for many installations.''

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