A channel letter lighting unit according to the present invention comprises a printed circuit board (PCB) having a plurality of linearly mounted light emitting elements. Input wires transmit a power signal to the PCB to illuminate the plurality of light emitting elements, and output wires transmit the power signal from the PCB. The PCB is mounted in the extrusion and the light emitting elements transmit light away from the extrusion. The extrusion promotes the dissipation of heat from the light emitting elements. A mounting mechanism is included for mounting the extrusion within a housing. A further embodiment according to the invention comprises a plurality of channel lighting units electrically connected to one another so that a power signal applied to the lighting system is transmitted to each of the plurality of lighting units. A still further embodiment according to the invention comprises an illuminated channel letter system having a housing in the shape of a letter. A translucent lens is included over the housing to transmit light from within the housing. A plurality of channel lighting units are mounted within the housing and coupled to one another in a daisy chain. A power signal applied to the first of the plurality of lighting units in the daisy chain is transmitted to the remaining of the plurality of lighting units.