Oil 35% more expensive than wood

Wood pellets are now significantly cheaper than oil-fired heating

12 May 2008

The relentlessly rising cost of oil means that wood pellets are now an even more attractive alternative, being a significantly cheaper form of heating in most situations. If oil is 5.5p to 5.8p per kWH and pellets are roughly 4p per kWH, then oil is currently 35% to 40% more expensive than wood pellet fuel.

This calculation is based oil costing 55p to 58p per litre at present and providing 10kWH per litre, and pellets being £200 per tonne delivered and providing 5MWh per tonne. This is a fairly conservative estimate of cost, and depending on your location and on what bulk quantity you can purchase, wood pellets may be even cheaper, providing further savings.

Contact us now to discuss your new wood pellet heating system.