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.

Biomass at Home

There are two main methods of using biomass to heat a domestic property. They are:-

•  Stand alone stoves with or without a back boiler to provide hot water for heating.

•  Central heating boilers.

Both methods can make use of logs or pellets. Only larger boilers (at least 15kW+) can make use of chips.

The Cost of Equipment

Within each category of boiler (gas, oil, wood etc) there is a wide range of costs depending on size, efficiency, make, model etc. The following is therefore given as a general indication only of what one might expect to pay for the type of boiler that would heat a typical third bed semi (around 15kW) excluding VAT:

In addition there is the cost of the flue and installation-typically in the range of £1000 to £1500 plus VAT depending on the type of heating system installed. In addition there will be the cost of fuel storage to consider.

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.

Notes

(1) There are a wide range of heating costs with electricity due to the different tariffs available. The lower end of the price range reflects the cost of heating using storage heaters utilising a night tariff.

(2) This is based on a heating oil price of 35p a litre in a boiler with an 85% efficiency. Unlike other fuels the cost of oil varies greatly over time (and by region).

(3)This is based on LPG at 30p a litre in a boiler with an efficiency of 85% .

(4) This is based on anthracite grains at £9.26 per 50Kg in a gravity fed boiler with 70% efficiency.

(5) This is based on natural gas at 2.4p/kWh in a boiler with an 85% efficiency.

(6) This reflects the wide range in the cost of logs, from free to those who have access to their own wood to the cost of logs bought in individual bags. p/kWh is based on a 300kg load of logs delivered with a 30% moisture content bought at a cost of £45 in a stove with a 70% efficiency. Wood bought at £30 a tonne with the same water content would cost 0.9p/kWh.

(7) Based upon a local delivery cost £45 a tonne (25% moisture) and £60 a tonne (30% moisture); calorific wood value 2778 kWh a tonne.

(8) 3p/kWh is based on pellets at £130 a tonne at 85% efficiency, a price that can be achieved for bulk orders. 3.5p/kWh is based on pellets at £175 tonne again at 85% efficiency.

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