Specifically testing fading of light, to give a more natural look rather then a sharp on/off.
I used an alpha gradient passing in front of light sources
Alpha blending in this instance is out of the question, the only other option I had was alpha dithering which results in moire patterns and other artefacts on the cast light, the slower the fade (the slower an alpha gradient is moving in front of a light) the more prominent these artefacts. However if the fade is quick enough like in this demonstration it dose give a decent effect.
Emulated indirect illumination with a 2nd light placed in a small ball just over the opening to the room and has another alpha gradient which passes in front of the dynamic light