What do pellets cost?

The selling price of pellets currently ranges anywhere from $120-200 per ton and averages $150. Price varies by region, availability, and season, just like other heating fuels. Because bags of pellets stack and store easily, many prudent customers take advantage of lower off season prices and ensure their winter fuel supply by buying early. Selling price, of course, is only a part of the cost picture. The primary issue is the cost of energy, which is measured in dollars per million British thermal units ($/MM Btu). Pellets purchased at the average $150 per ton and burned in a typical pellet stove cost about $11.50 per million Btu, a figure that is less than the cost of electric heat and competitive with average energy costs of some other fuels (see fuel cost chart, Appendix B, for comparisons at other prices). While tables and charts assume average appliance efficiencies and fuel costs, real world experiences vary widely. The actual cost of heating a home must take into account the insulation and tightness of the home, its size and layout, the level of comfort desired, and local climate. Other economic factors impacting energy costs, though hard to quantify, are also worth consideration. Biomass pellets reduce the use of dwindling fossil fuels, often imported from foreign countries. Every ton of waste material used in pellets reduces the rising costs associated with waste disposal.

 

 

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