Skip to main content

Wood pellet boilers are more expensive than oil boilers, but focusing on the purchase price is not the smart play.  If you are thinking about a new boiler or furnace, these are the factors you should consider:


25-Year Cost To Own

Expect your boiler to be in service for the next 25 years.  25 years ago oil was $0.82 per gallon.  At that rate you can expect to pay $16.20 a gallon in 2039… except that the rate of increase has been accelerating over time, so that number is probably low! The conservative estimate is a savings of over $100,000 over the life of the system.  “Balderdash” you say? Well, if you’re paying off a mortgage, saving for college, or just want another Ferrari in the garage you’ll probably want to watch this very brief video.


Rebates and Incentives

One of the reasons oil boilers are less expensive is that there are so many of them.  (Another reason is the ridiculous way the US government subsidizes the oil industry—but don’t get me started.)  In order to level the playing-field the Federal government and many States have developed rebates and incentive programs to offset the higher cost of wood pellet boilers.   You can research the incentives offered by your State on the Database of State Incentives for Renewables and Efficiency.  Or just drop us a line and you can ask your local Certified Pellergy Installer.



If you’re like most people, you finance your house and your car. Given the initial outlay for modern heating appliances it’s a good thing we have lots of  financing options. For example, a typical, 10-year green energy loan for a home that burns about 900 gallons of oil annually would save the homeowner over $1,000 a year in total heating costs while paying off the new wood pellet heating equipment at the same time. After the 10 year pay-back period your savings will be even more—about 40% less than the cost of oil—and who knows how much oil will go up in 10 years!

You may find the savings even greater if you can roll this purchase into your existing mortgage.  Please consider supporting your local banks and credit unions, where there’s a good chance you’ll find the best deal.


Run the Numbers for Yourself

Don’t take our word for it, use the calculator.

Screen Shot 2014-08-12 at 4.16.05 PM

First you’ll need to know how much fuel oil or gas you use.  Figure pellet prices anywhere from, $240/ton to $290/ton depending on your area.

Second you’ll also need to plug in an estimated system cost.