Worldwide the lighting sector demands around 1/5 of total electricity used. While the diffusion of new lighting technologies occurs quickly and prices for these technologies drop, at the same time around 1/3 of households in developed European countries continue to choose incandescent light bulbs. This phenomena shows a large potential for saving electricity. Therefore, the aim of our research is to model the diffusion of innovation for energy efficiency solutions in households in Latvia. The methodology combines an empirical study with system dynamics modelling. The model showed that electricity consumption in households decreased by 14% from the year 2015 until the year 2040. The sensitivity analysis shows that changes in the parameters used in this analysis caused expected behaviour, where the uncertainly in electricity consumption in households accounted for +/- 16% in the year 2040. Although this developed system dynamics model was based on a specific process of diffusion of innovation, its general application to other products and services is possible, since the developed model serves as a white-box. The structure of the model can be used for other studies; the model can be enhanced with the newest results or adapted for other case studies.