Oil vs. Pellet Fuel Comparison Shows Wood Pellets as Clear Winner

Daily Fuel Cost Comparison
(Average Cost per Unit) x (Number of Units per Season) / 182

Oil = $18.45/day
Pellets = $6.92/day 

Based on data from the 2021/22 heating season, choosing pellets over oil would save you over $2,000!

Cost Comparison by Heat Output
(Fuel Cost per Unit) / (Heat Content per Unit) x 1,000,000

Oil = $27 per million BTUs
Pellets = $18 per million BTUs

All calculations are based on the following:

  • Oil has¬†138,500 BTUs per gallon¬†at an average of¬†$3.69/gallon¬†with an average use of¬†910 gallons¬†in a heating season
  • Pellets have¬†17,200,000 BTUs per ton¬†at an average of¬†$315/ton¬†with an average use of¬†4 tons¬†in a heating season
  • There are 182 days in a heating season

Sources: https://www.eia.gov/tools/faqs/faq.php?id=987&t=7https://www.eia.gov/energyexplained/units-and-calculators/british-thermal-units.php