The light source must be designed to use less than 30 volts. Since most homes run 110 volts to all wiring and outlets, a built-in power transformer reduces the volts to 30 or less, ensuring the light source does not overload and fail.
Because low voltage lamps require a large reduction in voltage, often from 120 volts to 12 volts, a one to five percent loss of input wattage is incurred. This reduces the light source's output to 25 lumens per watt. In combination with an inherently smaller bulb, a low voltage lamp is a good choice as a light source for accent and dimming fixtures.
Low voltage lighting systems significantly increase bulb life-spans when compared to standard high voltage "in-line" lighting systems. A standard halogen light bulb under high voltage will last approximately 4,000 hours, but a low voltage halogen bulb can last 14,000 hours. This is the result of less filament evaporation due to the lower operating temperatures in a low voltage system.
LED systems significantly outperform halogen and incandescent bulbs when coupled with low voltage. An LED light can last up to 14 times longer than a comparable halogen bulb and be six times as bright.
There are two types of transformers for stepping down 120 volts to 12 volts -- integral and remote. Integral transformers are built into the fixture, as is the case with dimmer switches. If entire sections of a structure need reduced voltage, a remote transformer can be installed at the service location, where the electricity leaves the grid and can be controlled by the customer.
Whether in-built or remote, a transformer serves a single purpose of stepping down voltage to 12 or 24 volts. The accuracy of voltage reduction from remote transformers are affected by the amount of wire run -- the distance between the transformer and the low-voltage lamps being served. This may cause the actual voltage to be 11.5 or 23 volts on a 12 or 24 volt system, respectively. To fix this, it's necessary to manually adjust the voltage output at the transformer after the lamps have been installed.