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Comparing Pellet Fuel Energy Costs

Before we look at the cost of the pellet fuel, we have a quick look at the prices for pellet stove appliances which can range from about $1,700 to $3,000 for the stove and from $150 to $400 for installation. When we start comparing prices of pellet stoves against those of wood stoves, we can remember that pellet stoves offer a substantial savings as they don't require installation of a full-height conventional chimney or flue, which is typically the most costly part of some fireplace and wood stove installations.

Now back to the pellet fuel cost we can compare the price to the cost of wood. Pellet fuel are more expensive, at $130 to $200 per ton, compared with firewood, which runs from $100 to $175 per cord. But we can't just compare like that.

One ton of pellets fuel consists of 50 bags that weigh 40 pounds each. A cord of wood, which measures 4 feet by 4 feet by 8 feet is purchased by volume, which of course includes the voids between stacked logs and the moisture in wood that can't be converted to heat (20 percent to 30 percent). As a rule of thumb, one ton of pellets is roughly equivalent to about 1 1/2 cords of wood.

We can also evaluate based in the usage. Wood stove users burn from around 3 to 4 cords of wood per year. An average pellet stove appliance will use from 1 to 3 tons of pellets per year. Figuring in the costs above, pellets are often less expensive than cord wood. Of course, other advantages are time, as you save on the stacking and carrying of wood, and you need less storage space too, pellets can be stored in only one-third the space needed for cord wood.

A key factor to the cost of pellets is the location as you will need a supply nearby else you end up playing for transportation. Most of the pellet mills in the United States and Canada are located near lumber mills, furniture manufacturing, or millwork plants so be sure to ask your wood stove dealer about sources and prices.

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