The Log Pile Website > Wood Pellets > Cost

Competitively Priced Heating

Introduction

We are often asked to advise on the cost of central heating using the different types of wood fuels available (logs, pellet, chip) as opposed to the cost of heating with a fossil fuel such as gas or oil, or with electricity. Whilst many individuals and other organisations are keen to heat in a more sustainable way (by using a renewable source of energy such as wood) many are nervous about the costs and involved in the purchase of the fuel and equipment. Another issue of concern to many is the availability of wood fuel. Here at the National Energy Foundation we have found that the market for wood fuels is changing rapidly.  We are frequently advised of new suppliers of wood pellets and have found that as the price of oil and other fossil fuels have increased that wood fuels, particularly woodchip and pellets have become much more competitive, if not cheaper.

Fuel Costs

It is always difficult to make comparisons between the cost of heating with different fuels, given that there are a number of different suppliers in the market, different tariffs for day and night time (electricity), different costs according to the quantity purchased (particularly for solid fuels such as logs and coal) etc. In addition, the efficiency of the heating system installed needs to be taken into consideration when calculating a more appropriate cost per useful kWh in pence, rather than per unit cost. Given the number of variables the prices given should be treated with caution, perhaps reflecting the relative costs of heating with each type of fuel as opposed to absolutes.

Log Pile is a project from the National Energy Foundation which was supported by DEFRA.