Wood Pellets Cost: How to Calculate Your Savings
Every homeowner who heats with oil knows what it’s like to reel with energy shock—to be a helpless hostage to home heating diesel’s notorious price volatility. All the while, wood pellet home heating users relax with stable and lower energy costs.
Over the past decade wood pellets cost has remained relatively stable in comparison to oil pricing in the same time period. Diesel has seen both dramatic price fluctuations and overall increases that are over double those for wood pellets. As illustrated in the graph below, diesel and propane have seen a 350% and 302% rise in cost (respectively) in the past eleven years of price tracking. In the same time period, wood pellets have seen an 100% increase in price, not only drastically lower than the increases for petroleum based heating fuel, but also more stable over time (as illustrated in the gentle rise of the pellet price line below).
In addition to remaining more stable over time, wood pellets cost for heating has been consistently lower than heating diesel. Those who have made the switch from diesel to wood pellets have experienced up to a 50% reduction in home heating cost savings every year. This translates into faster payback for the customer choosing wood pellet heating as an alternative fuel source.
How to Estimate Your Savings
There are many online resources for estimating your fuel cost savings.
Start with this simple calculation to see how pellets can save you money now and in the long term.
The chart at the bottom of page gives you a really up-to-date snapshot of wood pellets cost compared to other heating fuels. Check out the last column marked for a one-to-one comparison.
|Heating Diesel to Wood Pellet||Propane to Wood Pellet|
|Liters of Home Heating Diesel Used||1’500 L||Kg of Propane Used||1’000 Kg|
|Price per Liter of Diesel||0,75 €||Price per Kg of Propane||1,00 €|
|Diesel Heating Costs||1’125 €||Propane Heating Costs||1’000 €|
|Equivalent Cost per Ton of Pellets||416 €||Equivalent Cost per Ton of Pellets||416 €|
|Equivalent Tons of Pellets Required||2,7 T||Equivalent Tons of Pellets Required||2,4 T|
|Wood Pellet Price per Ton||300 €||Wood Pellet Price per Ton||300 €|
|Wood Pellet Heating Costs||810 €||Wood Pellet Heating Costs||720 €|
|Equivalent Cost per Liter of Diesel||0,54 €||Equivalent Cost per Kg of Propane||0,72 €|
|Total Cost Saving per Year||315 €||Total Cost Saving per Year||280 €|
|CO2 Reduction in Tons||4,020||CO2 Reduction in Tons||3,142|
|1 Lt Heating Diesel <=> 1,8 Kg Wood Pellet||1 Kg Propane <=>2,4 Kg Wood Pellet|
This table illustrates the fuel-cost savings you will could enjoy if you switch from oil to wood-pellet heat. The cost savings are immediate.