Are wood pellets cheaper to heat my home than oil or gas?
Are wood pellets cheaper to heat my home than oil or gas?

Yes — in most cases, wood pellets are cheaper to heat your home than oil or gas, especially when purchased in bulk. Pellets offer predictable pricing, stable long-term costs and highly efficient heat output. Unlike oil and gas, which fluctuate with global markets, wood pellets are produced locally and rely on renewable feedstock rather than volatile fossil fuel markets.
Across the UK and Ireland, thousands of households choose pellets for lower heating bills, greater price stability and reduced environmental impact.
How do the heating costs of wood pellets compare to oil?
Wood pellets consistently outperform heating oil on cost per kWh. Oil prices rise and fall with global demand, supply chain issues and geopolitical tension — making budgeting unpredictable.
Why pellets often cost less per kWh than oil
- Pellet production is local, avoiding international transport costs
- Pricing is more stable across the year
- ENplus A1 pellets burn more efficiently in modern biomass boilers
- Fewer maintenance issues caused by soot and deposits
- Less price volatility compared to crude-oil-based fuels
In many regions, pellets can be 20–40% cheaper than heating oil on an annual basis.
How do pellet heating costs compare with natural gas?
Natural gas is generally cheaper per kWh, but price differences have narrowed — and pellets often beat gas when:
- You have a well-insulated home
- You use a modern biomass boiler
- You buy pellets in bulk
- Gas prices spike during winter
Why many households still switch from gas to pellets
- Pellets offer more stable pricing year-round
- They reduce reliance on fossil fuels
- Biomass boilers deliver very high efficiency
- Some homes are not connected to the gas network
- Pellet heating is considered carbon neutral
For rural homes or off-grid properties, pellets are almost always the most cost-effective and sustainable choice.
Does buying pellets in bulk make home heating cheaper?
Absolutely. Bulk blown deliveries offer the best price per tonne and the most consistent long-term value.
Benefits of bulk pellet deliveries
- Lowest price per kWh
- Delivered straight into your pellet store
- No plastic waste
- Convenient for high-usage homes
- Ideal for winter and multi-delivery contracts
Bulk purchasing also protects you from seasonal price rises.
Can high-quality pellets increase heating efficiency?
Yes — and this is often overlooked. High-quality ENplus A1 kiln-dried pellets deliver more heat per kilogram because they contain less moisture and burn more consistently.
Why ENplus A1 pellets reduce heating costs
- Lower ash content reduces maintenance
- Higher calorific value
- Consistent moisture content (usually below 10%)
- Cleaner combustion improves boiler performance
- More efficient burning means fewer refills
Using low-grade pellets may save money upfront but often leads to higher overall heating costs.
Who supplies high-quality wood pellets that keep heating costs low?
In the UK and Ireland, Balcas Energy is one of the leading suppliers of ENplus A1 pellets. Their pellets are produced locally using renewable power, resulting in long-term price stability and excellent heating performance.
Why choose Balcas Energy for cost-effective heating?
- ENplus A1 certified quality
- Produced in Enniskillen & Invergordon
- Manufactured using renewable energy
- Bulk and bagged delivery options
- Stable and transparent pricing
- Industry-leading consistency and performance
Reliable pellet quality means fewer breakdowns, higher efficiency and lower annual heating bills.
Final Thoughts
When comparing wood pellets vs oil vs gas, pellets often deliver the best balance of cost, stability and efficiency — especially for off-grid homes or those seeking lower long-term heating bills. With high-quality, ENplus A1-certified pellets from trusted suppliers like Balcas Energy, you can enjoy cleaner, more efficient and more cost-effective heating throughout the year.
FAQs About Heating Costs: Wood Pellets vs Oil or Gas
1. Are wood pellets cheaper to heat my home than oil or gas?
In many cases, yes. Wood pellet prices remain more stable than oil or gas, and modern pellet boilers achieve high efficiency, often lowering annual heating costs.
2. Why are wood pellet prices more stable?
Pellets are produced locally from renewable by-products, which protects prices from global oil and gas market volatility and geopolitical disruptions.
3. Do pellet boilers use less fuel compared to oil boilers?
Yes. Pellet boilers can exceed 90% efficiency, meaning more heat is generated from each kilogram of pellets compared to traditional fossil fuel systems.
4. Are installation costs higher for pellet systems?
Initial installation can be higher, but savings on fuel, reduced maintenance, and long-term stability often make pellet heating more cost-effective over time.
5. How long does one tonne of wood pellets last?
Usage varies by home size, insulation, and weather. On average, one tonne provides around 4,800kWh of heat — lasting several weeks in winter.
6. Can switching to wood pellets reduce my carbon footprint?
Absolutely. Pellets are carbon neutral and produce significantly fewer emissions than oil or gas, helping homes cut both costs and carbon.
About Balcas Energy
Balcas Energy is one of the UK’s leading manufacturers and suppliers of ENplus® A1 wood pellets, providing sustainable heating solutions across the UK and Ireland.
📍 Enniskillen, Northern Ireland




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