At what price of oil per gallon do you go with pellets per ton ?
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TimfromMA
Minister of Fire
I think you are asking for my break even point but Im not sure.
Just in case, for me oil becomes cheaper if it drops to $2 per gallon OR if pellets go to $550 per ton.
Just in case, for me oil becomes cheaper if it drops to $2 per gallon OR if pellets go to $550 per ton.
alternativeheat
Minister of Fire
I honestly can't say because with oil I never dared to try and keep my house at 72-74 deg.
Around me oil can be had for $2.87 anything north of $330 a ton makes them pretty equal on a BTU basis. But that comparison would only be valid if you had a oil stove in the middle of your house like you do a pellet stove.
Take into account a old heating system or one that is installed improperly or grossly oversize and who knows what price is break even. A lot of folks also don't heat there whole house with a stove they deal with cold rooms and accept it because they are saving money. That said if I still burned oil Id probably opt for oil at these prices it was far more comfortable even if did cost a couple hundred more a winter.
Take into account a old heating system or one that is installed improperly or grossly oversize and who knows what price is break even. A lot of folks also don't heat there whole house with a stove they deal with cold rooms and accept it because they are saving money. That said if I still burned oil Id probably opt for oil at these prices it was far more comfortable even if did cost a couple hundred more a winter.
alternativeheat
Minister of Fire
My daughter couldn't afford the oil heat at her house easily last year and kept the house down around 63. She loved coming here to the stove heat that she remembers growing up to. A bit different now with the pellet stove vs coal stove but similar concept. So now they have moved, the new house has an option to buy. She says first thing they are getting once it's their house is a stove. So sometimes there is another kind of comfort in burning stoves than saving money alone. I know the concept generally is that though, saving money. When oil prices are up pellets are cheaper and coal cheaper yet. It's still nice having a productive fire in the house and it works well in our house. Upstairs is a bit cooler than down, we all have been used to sleeping that way. The living room is mighty inviting on a cold winter day. My adult daughter walks in, sheds her outer wear, kicks off her shoes and sucks that heat up on the couch ! I think I would keep it at 74 just to see her do that like she did as a kid !!
RAVinMetrowest
New Member
Seasoned Oak
Minister of Fire
At $3 a gallon your paying about $31 per MBTUs (Million BTUs) Pellets around here are usually about $200 a ton which would be approx. $17 per MBTUs. Coal at $200 a ton is about $10 per MBTUs. Incidentally corn at todays market price(if you can buy it for that) is less than $12 per MBTUs.
To answer your question Oil would have to be less than $2 a gallon to equal pellets price wise.
(Edit) Not going to happen. Stay with pellets.
To answer your question Oil would have to be less than $2 a gallon to equal pellets price wise.
(Edit) Not going to happen. Stay with pellets.
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Markus38
Member
Ok so first off there is too many factors (efficiencies of equipment, system eff., .....) to make this perfect. This is just an estimation.
BUT if you just take in consideration the BTUs of the source and do not put efficiency of equipment. The assumption I used was 8000 btu/lb for pellets and 138800 btu/gal for oil you get approximately 115.3 gallons of oil to a ton of pellets. below is a chart to illustrate. If oil is $2/gal and pellets are $250/ton buy oil. If oil is $3.20/gal and pellets are $350/ton buy pellets.
BUT if you just take in consideration the BTUs of the source and do not put efficiency of equipment. The assumption I used was 8000 btu/lb for pellets and 138800 btu/gal for oil you get approximately 115.3 gallons of oil to a ton of pellets. below is a chart to illustrate. If oil is $2/gal and pellets are $250/ton buy oil. If oil is $3.20/gal and pellets are $350/ton buy pellets.
Wilbur Feral
Minister of Fire
Thank you. If only more people used their magical little friend, the brain. And maybe a calculator - either the handheld kind or even better, an online model (free) that will even factor in system efficiency. I read your response and thought, "Yes, there is still hope".
The USDA Forest Products Laboratory has a fuel calculator at:
http://www.fpl.fs.fed.us/products/publications/specific_pub.php?posting_id=17526&header_id=p
which can calculate all those values for you. The Excel sheet is very nice.
http://www.fpl.fs.fed.us/products/publications/specific_pub.php?posting_id=17526&header_id=p
which can calculate all those values for you. The Excel sheet is very nice.
TimfromMA
Minister of Fire
Easiest formula to use.
(Your cost for oil / electric / propane / NG per year before pellets) - (Your cost oil / electric / propane / NG per year after pellets + (annual cost of pellets)) = (Your annual savings)
Do this same calculation with today's rates. If your answer is positive, stay with pellets. If your answer is negative, switch back to your previous heating method.
(Your cost for oil / electric / propane / NG per year before pellets) - (Your cost oil / electric / propane / NG per year after pellets + (annual cost of pellets)) = (Your annual savings)
Do this same calculation with today's rates. If your answer is positive, stay with pellets. If your answer is negative, switch back to your previous heating method.
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My pellet boiler heats the whole house more comfortably than the oil boiler, plus the thermostat is set a bit higher. I figure if oil drops to about $1.85 I'd think about it cause I would shut off the electric water heater and let the oil boiler take care of hot water too.
DOLLARBILL
Feeling the Heat
briansol
Minister of Fire
JohnRXL
Member
Seasoned Oak
Minister of Fire
The fuel calculator i used already factors in efficiencies. OIl will not be going under $2 a gallon so continuing to phase out oil as a space and water heating fuel is a sound strategy.
Pellet prices are much less prone to spikes and much more sustainable.
Pellet prices are much less prone to spikes and much more sustainable.
RKS130
Minister of Fire
I doubt there is a fixed break even point unless one figures in oil consumption vs pellets and the cost of each. I suppose someone a lot smarter than me could work up an algorithm/formula to just plug various numbers into. That is way above my pay grade. Besides, I never bought in to the cost per BTU analysis, since so many BTUs are wasted no matter how you heat, so the only true measure is what your cost is to be comfortable.
I do it the simple and stupid way. I know I burned, on average, about 1200 gallons of oil/year when I heated with oil and about 4 tons of pellets now that the stove is my primary heat source. I still use about 250 gallons of oil/year for hot water and occasional supplemental heat in a prolonged deep freeze. So, with oil at about $3.25/gallon around here this week, I would spend almost $3100 to heat with oil. I just spent about $1125 for my supply of pellets for the year. In my book, thats 1975 votes for pellets.
Seasoned Oak
Minister of Fire
Another way to look at it is: Had i stayed with oil heat instead of switching to solid fuels in 2002, today i would be about $36,000 poorer. Avg savings of $3000 a year.
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