Does it make financial sense to burn wood?

[Itslay90]

Does it make financial sense for someone who doesn’t have a chimney or a wood-burning stove to invest in both just to save money on heating oil?


Installing a chimney, buying a wood stove, and paying for professional installation can cost thousands of dollars. But once everything is installed, you may be able to save money on heating costs over the years, especially if you have access to affordable firewood or process your own logs.


Of course, you also have to consider the cost of firewood, chimney maintenance, your time, and the work involved in cutting, splitting, and stacking wood.


What do you think? Is investing in a wood-burning stove worth it if your main goal is to save money on heating oil, or does the upfront cost make it hard to justify?

 

[stoveliker]

Suppose the cost of everything is 15k$ (stove, chimney, some wood processing tools).
Assuming the wood is free.

With the current oil prices ($5.55/g here for 200 gallons), that accounts for 2700 gallons of oil.
I think that's 5 years of oil? (No idea - 2 tanks per year?)

To me a break even point after 5 years is reasonable.
Maybe that becomes 6 years if one pays a chimney sweep and has some other reasonably low running cost (e.g. a cat replacement).
That's still fine.
In fact, that's similar timeframes to break even as for solar panels (at least back when both federal and state tax credits existed, here in NY).

For $3 per gallon oil, it'd be 5000 gallons. That'd be 9 years for 540 gallons per year.

Again, all depends on how high the oil price is and how much oil usage per year to heat.

 

[begreen]

Run the numbers, while understanding that the present pricing scenario may change over time.
Craig, hearth.com founder, has posted a nifty calculator to help compare fuel costs.

Compare the Cost of Common Home Heating Energy Sources

get a general idea of Energy Pricing for Residential Customers.

theenergyprimer.com

 

[ABMax24]

Natural gas costs me $5 CAD per million BTU. On average I replace about 30 million BTU per year of natural gas with wood. Which saves me about $150/year in natural gas. And I spend all that and then some in fuel for the truck, saw, maintenance on truck, saw and stove. And that's before the $7k it cost to install the stove in 2018, the extra $200/year in costs me in home insurance. And of course all the added work in cutting, splitting, stacking and hauling the wood. And the work associated with operating the stove.

 

[djlew]

Just speaking from personal experience, I did not get into the wood burning game with long term savings in mind. I think it's likely to make that work, but for me it came down to options. At the time, I had no natural gas service and was heating with an electric heat pump. In that case, it did actually make more financial sense 5 years ago to go wood burning but even still it wasn't my main driver going for it. I wanted emergency heat in case of power outages with the ability to still cook on the cooktop. I got that out of my little Jotul.

All that to say that I do find myself surprised when folks go wood burning with strictly cost savings in mind. I think it's tough to justify if you are strictly monetizing every aspect of it (upfront cost, time, personal labor, etc.), and it's easier to look at it as a hobby with some serious benefits when the grid, whichever one, fails us. Maybe more of an insurance policy? That's just me, respect to everyone who is able to get that kind of payoff.

 

[reaperman1]

Price out a new LP furnace, most likely your hvac guy will tell you to replace your current AC unit along with the furnace. Replacing those will be north of 10k on average too. You have to ask yourself if your up to the task of putting in the work involved to keep a wood stove going. Im entering into my 40th year of burning this season and to answer my question is, yes, im still willing to do what it takes to keep my Minn, home nice and warm in sub freezing temps. I have a good 5+ year supply of hardwood split and dry on hand and started cutting again to keep my stack growing. In 40 yrs of burning I wish I knew how much money I saved, not to mention a warmer house then I would have had without. And this doesnt include the stove I have in my insulated shop.

 

[Murray01]

For me to heat with electric baseboard heaters it would cost me about $2000/winter and that’s a conservative estimate. New stove/chimney and hearth construction was $12,000, so 6 years payback.

For me to heat with wood, financially, is a no brainer. The fresh air and exercise getting firewood is an added bonus.

 

[Eman85]

Everyone's situation is different. We have a combo heat pump- gas furnace that is fairly new and keeps us comfortable at a fair price. That said I have an abundance of wood from my own land and the equipment to process it. I'm also getting old and my back hurts.

 

[Moose032]

There’s an older but funny graphic I saw somewhere about this called “How much you can save burning wood” and it lists out cost of new stove and pipe, cost of 4x4 to haul wood, cost of new chainsaw, etc and then net savings negative $50k.

For me I just really enjoy cutting/splitting and the whole process and I’m fortunate enough to have access to free wood but I’m not sure if the long term savings would outweigh the work for someone who didn’t really enjoy it.

 

[stovelark]

Been burning my whole life, grew up with it and still do in SE CT. I will say nothing warms you like a wood stove. At times, I've burned to save money and still do to a degree. The difference now is working for a propane company, they are very nice to us with its cost, so wood burning still is something I like to do, when I want to, not having to. I'm fortunate in that regard, but I like many here still enjoy the hunt for the wood, getting it home, cutting it, stacking and burning it... Hopefully that joy is never taken away. I do realize too that a lot of folks just don't have the desire to do it.