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Yes, it will save both electricity usage and some money.
When you dim a light it actually reduces the electricity usage and saves you money.
It has a Triac semiconductor that switches the current on and off 100 times a second.
When in the off position - no electricity gets used and the light is off
When in the on Position - Electricity gets used and the light is on
Therefore the longer the light is in the off position during the cycle - the lower the light output will be and less electricity will be used.
If the lights are being turned on and off 100 times per second - why can't we see the light flickering?
We can't see the flickering because the light level is smooth and constant.
Compare dimming to a movie projector. A movie is actually 35 individual frames per second, projected so quickly that you can't see the break between frames. The dimmer operates almost 3 times faster.
So how much electricity can you save?
(Source dimmers.net/dimmer_faq.asp#q2)
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by Andrew