Pellet supply and demand...........
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It seems the further away from the pellet mills the less supply there is and the prices are going even higher. However, I'm not sure I agree with this statement:
"Even if the price of pellets doubles, energy experts say, it’s still more cost-effective than oil..."
Steve
"Even if the price of pellets doubles, energy experts say, it’s still more cost-effective than oil..."
Steve
Given a cost of $400/ton for pellets @80% efficiency, and oil at $3.50/gal at 80% efficiency, pellets would be approx $1.20 cheaper per Million BTU.
If oil was higher, obviously the savings would be even greater.
I figured this using the Pellet Fuel Institute calculator
(broken link removed to http://www.pelletheat.org/3/residential/compareFuel.cfm)
If oil was higher, obviously the savings would be even greater.
I figured this using the Pellet Fuel Institute calculator
(broken link removed to http://www.pelletheat.org/3/residential/compareFuel.cfm)
[quote author="
"Even if the price of pellets doubles, energy experts say, it’s still more cost-effective than oil..."
[/quote]
I seriously doubt the above. However if you are willing to live with less heat output which translates to less area heated along with much less even temperatures throughout the house, you *could* save some money. But you would have to accept and live with the reality of space heating as in returning to pre 50`s times vs central heating system.
It`s really not difficult but being that the past 3 generations have always been exposed to the luxury of abundant heat , this could be mighty uncomfortable for some.
"Even if the price of pellets doubles, energy experts say, it’s still more cost-effective than oil..."
[/quote]
I seriously doubt the above. However if you are willing to live with less heat output which translates to less area heated along with much less even temperatures throughout the house, you *could* save some money. But you would have to accept and live with the reality of space heating as in returning to pre 50`s times vs central heating system.
It`s really not difficult but being that the past 3 generations have always been exposed to the luxury of abundant heat , this could be mighty uncomfortable for some.
I use a cost calculator put out by PENN STATE. I don't have it here but if I remember it right pellets at $250 per ton equals oil at $4 per gal. The propane was about $1.20 a gallon to equal out. Don't quote me on those numbers I'll try to remember to bring it home tomarrow.
slink said:
Actually, their calculator ends up the same as the PFI one. $4.00/Gal oil is 2x more expensive than $250/ton pellets
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