How Did We Calculate Your Savings?

We’ve broken down the math for you, so you can see everything, step by step – and you can calculate your own exact savings.

Heat output for your home heating is measured in BTU (British Thermal Unit). One ton of pellets has about 13.6 million BTU, and heating oil has about 115,000 BTU per gallon. So:

One ton of pellets = approximately 120 gallons of heating oil.

But according to an American Council on Energy Efficient Economy (ACEEE) study*, consumers heating living areas directly (such as with a pellet stove) can achieve a 20-40% gain in energy efficiency. Savings may vary by household, but is estimated here at 20%. Because of this efficiency gain, a homeowner may actually require 80% of the fuel they would have required for central heating.

So, taking the efficiencies of space heating into account, one ton of pellets can roughly displace 150 gallons of heating oil.

One Ton of Pellets = (120 gallons/ton) / (80% of energy required) = 150 gallons of heating oil equivalent

If you want to compare the price you pay for the heat you get, just divide your wood pellet price by the number of equivalent gallons:

$250/ton / 150 gallons = $1.67 / gallon of oil

Still want more information? Check out our spreadsheet of calculations here.

*McBride, John R. et al. Zone Heating as a Low-Income Energy Conservation Measure, ACEE Summer Study on Energy Efficiency in Buildings 1999