Heating with wood pellets
Updated August 2026 · typical retail, $200–$400/ton (EIA reported ~$240/ton bulk in 2026)
Quick answer: wood pellets delivers heat at $18.94 per million BTU (80% efficient pellet stove (75–85% typical)) — #3 cheapest of 7 common options. A 2,000 sq ft home in a cold climate runs about $1,705/season.
Compressed sawdust with surprisingly competitive economics: a ton holds ~16.5 million BTU and a modern pellet stove burns it at ~80% efficiency.
Pros
- • Often cheaper per BTU than oil, propane and electric
- • Renewable, stable pricing vs fossil fuels
- • Automatic feed — closer to a furnace than a wood stove
Cons
- • You haul 40 lb bags and store pallets
- • Needs electricity to run (no heat in an outage)
- • Daily/weekly ash and hopper maintenance
Season cost by home size & climate
| Home size | Mild | Moderate | Cold | Very cold |
|---|---|---|---|---|
| 1,000 sq ft | $284 | $568 | $852 | $1,136 |
| 1,500 sq ft | $426 | $852 | $1,278 | $1,705 |
| 2,000 sq ft | $568 | $1,136 | $1,705 | $2,273 |
| 2,500 sq ft | $710 | $1,420 | $2,131 | $2,841 |
| 3,000 sq ft | $852 | $1,705 | $2,557 | $3,409 |
Compare against everything else
Estimated heating load: 81 million BTU/season — a rough figure; insulation and thermostat habits move it a lot.
Season cost by fuel (edit any price — it's your local number that matters)
≈ 7,913 kWhs · season-average COP ≈ 3.0 for a modern cold-climate air-source unit (2.0–4.0 depending on climate)
≈ 900 therms · 90% AFUE furnace (standard 80%, condensing up to 97%)
≈ 6.1 tons · 80% efficient pellet stove (75–85% typical)
≈ 5.3 cords · 70% efficient modern EPA wood stove (open fireplaces can be 10% or worse)
≈ 688 gallons · 85% AFUE oil furnace/boiler (older units 80%, new 87%+)
≈ 984 gallons · 90% AFUE propane furnace (condensing up to 97%)
≈ 23,740 kWhs · baseboards, electric furnace or space heaters — 100% efficient at the unit, but every BTU is made from scratch
Estimates: national-average prices (sources on each fuel page) and typical system efficiencies. Your utility bill has your real per-unit price — plug it in above for a number you can act on.
FAQ
How much does it cost to heat a home with wood pellets?+
At the current average price ($250/ton) and a typical system (80% efficient pellet stove (75–85% typical)), wood pellets delivers heat at $18.94 per million BTU — roughly $1,705 per season for a 2,000 sq ft home in a cold climate, less in milder ones.
Is wood pellets cheap compared to other heating fuels?+
It ranks #3 of 7 common heating options by cost per delivered BTU at national-average prices. Compressed sawdust with surprisingly competitive economics: a ton holds ~16.5 million BTU and a modern pellet stove burns it at ~80% efficiency.
What are the downsides of heating with wood pellets?+
You haul 40 lb bags and store pallets. Needs electricity to run (no heat in an outage). Daily/weekly ash and hopper maintenance.