Use surtling trophies as lights at your front door, work well and don't use fuel. Inside use the little yellow shrooms on a stand where you need some light but not a lot, like on a second floor. Potion bottles also make a nice light, the yellow ones, green a bit garish.
When fall seasonal item pops, the turnip jack o'lanterns are pretty fun and cast a nice light. Look great on the ovens.