Christmas trees are typically illuminated by holiday lights, which can vary in terms of energy consumption depending on the size and number of lights used. According to Energy Star, a typical 3-foot tall Christmas tree with 350 lights uses about 600 watts of electricity when it's on, but this can vary depending on the type of lights used and how long they're kept on. It's estimated that the average household spends about $16 on electricity to power its Christmas tree throughout the holiday season.