Save $506 with Wood Pellets versus Oil this year! *
How did we get these numbers?
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.
Consumers heating living areas directly 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.
We assume that the appliance efficiency for a modern pellets stove to be nearly equal to that of a oil, gas, propane boiler or furance.
*According to an American Council on Energy Efficient Economy (ACEEE) study.
** Initial oil price based on an average price of oil in the Northeast from the U.S. Energy Information Administration for November 2014.