Heating Oil and Pellet Fuel Cost Comparison

Oil Heat Cost per Heating Season VS Pellet Fuel (Based on data from 2022/23 Heating Season)

Based on the data from 2022/23’s heating season, choosing pellets over oil would save you nearly $3,000!


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

Oil = $24/day
Pellets = $7.69/day 

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

Oil = $35 per million BTUs
Pellets = $20 per million BTUs


*All calculations are based on the following:

  • Oil has¬†138,500 BTUs per gallon¬†at an average of¬†$4.80/gallon¬†with an average use of¬†910 gallons¬†in a heating season
  • Pellets have¬†17,200,000 BTUs per ton¬†at an average of¬†$350/ton¬†with an average use of¬†4 tons¬†in a heating season
  • There are 182 days in a heating season


Source: U.S. Energy Information Administration

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
https://www.eia.gov/dnav/pet/pet_pri_wfr_a_EPD2F_PRS_dpgal_w.htm

Wood Pellets: 3 Reasons to Consider This Low-Carbon Renewable Fuel for Home Heating

Renewable Across the Board

Wood pellets manufactured from carbon-neutral wood fiber is an innovative utilization of wood waste generated by the manufacturing of other products.

Every day wood “waste” (sawdust, wood chips, shavings, etc.) is generated in staggering quantities through the production of lumber, flooring, cabinetry, millwork and furniture.

These leftover clean wood residues that would otherwise be considered as “waste” and sent to a landfills is acquired by pellet manufacturers and engineered into an efficient heating fuel.

In 2020 alone, 8.8 million tons of wood product waste was purchased by pellet producers from upstream forest product manufacturing sites.

A Necessary Low-Carbon Option

Rising carbon dioxide levels in the atmosphere are in large part a result of burning of fossil-derived fuels for energy. Wood pellet fuel interrupts this cycle by recycling the carbon dioxide emitted during combustion in the regeneration of the forests grown to meet the demand from the forest products industry on which it relies for fiber.

Wood pellet fuel brings a low-carbon alternative to the home heating landscape and displaces demand for fossil-based fuels with higher carbon intensity such as heating oil and propane.

Contributing to the Local Economy

Not only do they create jobs in their facilities, but wood pellet manufacturers generate jobs in trucking, logging and maintenance.

Additionally, it’s worth noting that five hundred million dollars of wood pellet sales for residential heating were generated in 2020 – often for independently owned small business owners.

PFI

Want to learn more about the wood pellet industry?

Access the Pellet Fuel Institute’s digital booklet, “Sustainable from the Beginning: 3 Facts About Wood Pellet Manufacturing and Use” here.

Ready to place an order for quality-guaranteed wood pellet fuel to be delivered to your home?

Shop online at Woodpellets.com or simply call 1-800-PELLETS to speak to an expert!

 

Another Tough Winter Ahead: It’s a Good Time to Have a Pellet Stove

Woodpellets.com

In addition to the National Oceanic and Atmospheric Administration’s forecast of an unusually cold winter, the cost of natural gas and heating oil is skyrocketing.

Folks in the Northeast lucky enough to own pellet stoves will likely be depending on them for heat more than ever this winter.

According to this NH Bulletin report, “The higher cost of energy is linked to inflation and other factors that extend far beyond state borders. Because American gas producers can fetch a higher price for gas abroad, that‚Äôs increasingly where they are sending it, according to Sam Evans-Brown, executive director of Clean Energy New Hampshire, a nonprofit that advocates for clean energy.

‘The cautionary tale here is really that we are over-reliant on a fuel that we thought was going to be at $2 per million BTU forever. And really, the story is that was an artificially low price. Now the mistaken belief that that was the norm is coming home to roost,’ Evans-Brown said.

Evans-Brown is talking about natural gas, used by just over 20 percent of New Hampshire households for heat. Those households could see a 30 percent hike in heating costs compared to last year, according to the U.S. Energy Information Administration.

For the two out five homes in New Hampshire that heat with fuel oil ‚Äď the most common type of heating system in the state ‚Äď spending is predicted to increase by 43 percent.

‘There‚Äôs nowhere else in the United States that is as reliant on heating oil as New England is. It means that these price swings are just genuinely unaffordable,’ Evans-Brown said.

But neither natural gas nor fuel oil are predicted to see the biggest price jump. The 17 percent of New Hampshire households heating with propane are expected to see a 54 percent increase.”

Read More >> The Dismal Heating Season Ahead: Lower Temperatures and Higher Prices

 

Are you ready for this winter? If you haven’t secured your wood pellet fuel yet, the time is now. Home delivery of premium wood pellets to your driveway is FREE!

Shop online or call 1-800-735-5387 to speak to an expert!

 

 

The Economics of Wood Pellet Heating Fuel: Understanding the Key Factors

Wood pellet heating has gained popularity as an efficient and eco-friendly alternative to traditional heating fuels such as oil or gas. However, the cost of wood pellets is not immune to fluctuations, just like any other commodity. Several factors contribute to the cost of wood pellet heating fuel, including supply and demand, transportation costs, and production expenses.

One of the key drivers of wood pellet heating fuel prices is the cost of raw materials. The majority of wood pellets are made from sawdust and other wood waste materials. As a result, the price of wood pellets is closely tied to the cost of lumber and other wood products. If the cost of raw materials increases, the cost of producing wood pellets will also increase, which could drive up the price of heating fuel made from these pellets.

Another factor that affects the cost of wood pellet heating fuel is transportation costs. Factors like increases in fuel prices, trucking shortages and DOT regulation changes can make transportation more expensive, which may cause the price of wood pellet heating fuel to rise.

Supply and demand also play a crucial role in the cost of wood pellet heating fuel. The demand for wood pellets has been on the rise due to the increasing popularity of pellet stoves and boilers. However, the supply of wood pellets can be affected by various factors such as weather conditions, production capacity, and distribution channels. If the supply of wood pellets cannot keep up with the demand, the price of the fuel may increase.

Lastly, global factors like crude oil prices can also affect the cost of wood pellet heating fuel. Although wood pellets are not made from crude oil, changes in oil prices can influence the cost of other fuels and cause people to switch to wood pellet heating fuel. This increased demand can result in higher prices for wood pellets.

While these factors can contribute to price fluctuations, wood pellet heating remains an eco-friendly and efficient alternative to traditional heating fuels. It’s essential for consumers to stay informed about market conditions and be mindful of their consumption habits to keep the cost of heating their homes with wood pellets under control.

Ready to speak to an expert about your home heating? Call 1-800-PELLETS or get a free quote online.

It’s Official: Wood Heat Tax Credit for Homeowners Passed by Congress

Recently, parts of The BTU Act (Biomass Thermal Utilization Act) were passed through Congress and signed into law, officially placing wood pellet stoves on a level playing field with other renewables that have been receiving appliance tax credits for a long time.

What does this mean for residential wood pellet heating?

A three-year investment tax credit (ITC) for high-efficiency wood-fired home heating equipment is now official!

The credit applies to the installed cost of home heating and hot water systems that utilize wood pellets, chips and cordwood at efficiencies greater than 75 percent high heat value.

The tax credit is for 26 percent in 2021 and phases down to 22 percent in 2022 and 2023.

For example, a wood pellet stove that costs $4,000 to install in 2021 will result in a savings of approximately $1,000 when applied to the homeowner’s 2021 tax return.

Charlie Niebling, a consultant for wood pellet producer Lignetics, has been working to enact the BTU Act for more than a decade. He has called the tax credit plan a ‚Äúgame changer‚ÄĚ for residential wood heating.

“Our message to Congress for years has been…don’t pick winners and losers,‚ÄĚ explained Niebling. ‚Äú[Wood heat] deserves the same recognition in the federal tax code that solar and wind do.”

If you’d like details about this bill passing, read more¬†here.

Winter Reminder to Clear Pellet Stove Venting to Prevent Air Flow Blockage

Heavy snow buildup can definitely affect your pellet stove’s venting and your burn experience. Wood pellet stoves operate through a system of air intake and exhaust. If this system is hindered by a blockage, proper combustion of the pellets can’t happen. Unlike wood stoves, pellet stove venting can be either horizontal, vertical or both.

One of the ways a pellet stove burn exhaust can be set up is horizontally, straight through the exterior wall. (See Fig. A)¬†The exterior vent allows proper air flow within the stove, and the exhaust to escape. If it’s blocked by dense snow – your stove’s ability to ignite and/or stay burning efficiently could be hindered. If your wood pellets aren’t burning through fully – this blockage could be the reason.¬†(See Fig. B)¬†

A similar kind of venting is through the wall with a vertical rise (Fig. C). Vertical piping raises the exhaust further up the exterior wall. This kind of setup holds less risk of snow blockage. However, strong snow drifts (or very high snow accumulation) can still create blockage.

Pellet stoves can also have exhaust vents exiting through the roof – with some variations (Fig. D). If your roof has heavy snow piled up that hasn’t slid off or been pushed off, the vent could be blocked. Make sure to check for blockage – no matter how your stove is vented.

Speaking of snow…our Woodpellets.com delivery trucks park on the street, and bring your pallets up your driveway with a forklift. Of course, there is nothing you can do about large snow banks taking up space on the road, but you can make sure your driveway is plowed enough for our 8 foot wide forklift. This¬†will help the driver make a successful delivery – and help you avoid delivery delays.¬†

Please let us know if you have any questions. Call 1-800-PELLETS to speak to an expert!

 

 

New Customer Saves Time and Money Switching from Box Store Pickup to Woodpellets.com Home Delivery

I wish to take this opportunity to express how grateful I am toward your professionalism.

Before I ordered from you, I was suspect of the delivery process. This was due to my experiences from other vendors, as they either were late with the delivery or cancelled the order due to “Backorders”. But I decided to order from you and take a “chance”.

Back in June of this year, I ordered 3 tons to be delivered in September. Well, it started to get later and later in the month. This caused some anxiety on my part. Well, no sooner than I reached my peak, I received a text that delivery of the pellets was to be on Thursday, Sept. 24th.

When the truck pulled up, I could not have been more relieved. The delivery person dropped the pallets exactly where I requested them.

As I do not have a driveway, and live in a congested neighborhood, I had to have them placed in an “inconvenient” place. This made the situation such that I had to “carry” each bag into my backyard and took me over 3 hours. Although that sounds terrible, it was not nearly as bad as what I used to have to do.

Every year, I would have to:

1) Go to the local Home Depot or Lowes

2) Pick up 10-15 40-pound bags at a time due to my vehicle

3) I would have to drive home, only to carry them into my house.

4) Repeat this process 12-15 times.

The worst part is that [the box store] ran out of pellets in late February-early March. As you know, our winters go into March (sometimes into April). So I would have to turn on my electric heat for the remaining 2-3 weeks. I could have bought a pallet from them, but it cost $400 per ton with delivery. The other negatives were: the BTU value was 7,500, there was high ash content, and I was paying $7.00 per bag.

With [Woodpellets.com] and the 3-ton delivery, I paid only $935 (WITH DELIVERY), saving me a little over $120!

I do not have drive to the store anymore; I have a better quality product; and, strangely, there was a labor-savings on my end, as it took me only 3 hours to re-stack them in my yard and house (it used to take me 15 hours with driving to the store, driving home, and stacking them in my house).

To make a long story a little bit longer, your customer service is friendly, polite, professional and has a “family-oriented” feeling to it.

– Mark C. of Massachusetts

This New 3-Ton Wood Pellet Bundle Helps You Save Money and Burn Strategically

Woodpellets.com 3-Ton Blended BundleOur special Blended Bundle includes one ton of our popular new hardwood/softwood mix, Cleanfire Premium Blend, as well as one ton of the always reliable Cleanfire Hardwood and one ton our best selling softwood, Cleanfire Pacific.

This 3-ton wood pellet pack is not only economical – but strategic as well!

We suggest starting out the heating season with Cleanfire Hardwood, switch to Cleanfire Premium Blend along with lower temperatures, then bring in your Cleanfire Pacific for the coldest part of the winter.

Heating your home by matching the wood pellet heat output with the time of year will maximize your efficiency and your budget.

Read >> New Hardwood/Softwood Mix Available in 40lb and 20lb Bags

Learn more about the Blended Bundle and all the premium pellet fuel available in your area by visiting our website or call the experts at 1-800-PELLETS!

5 Things You Should Know According to a Professional Pellet Stove Tech

Woodpellets.com1. Read the manual that came with your stove. According to Jason Tardiff of J&L Chimney Works in NH, this is the number one thing stove technicians wish customers would take seriously. He explains; “Most of the time, the answer to the problem lies in the pages of their owner’s manual.” From proper stove maintenance, to best practices and warranty information – the manual is packed with model-specific information, and it’s very often overlooked.

2. Don’t be so quick to blame the pellets. If your stove isn’t igniting, if you have a weak flame, or your pellets won’t stay lit, the fuel shouldn’t be your first thought. When was the last time you had your stove professionally cleaned? If you do it yourself, are you really getting to all the parts that need attention? Your pellet stove works off of pressurized air which is drawn from the exhaust. Have you cleaned all those passages? Is your exhaust clear of debris? Jason describes his years of discoveries: “The exhaust pulls in anything that’s in the air – so pet hair, dander, dust and lint are constantly sucked in. And as far as the auger goes, items left on the stove can fall and work their way in. I’ve found spoons and G.I Joes crammed in there.”

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