Pellets vs Propane, current pricing, I'm finding pricing is about equal.

  • Active since 1995, Hearth.com is THE place on the internet for free information and advice about wood stoves, pellet stoves and other energy saving equipment.

    We strive to provide opinions, articles, discussions and history related to Hearth Products and in a more general sense, energy issues.

    We promote the EFFICIENT, RESPONSIBLE, CLEAN and SAFE use of all fuels, whether renewable or fossil.
Status
Not open for further replies.

joe_pinehill

Member
Nov 29, 2008
115
nj
I just got the current pricing for Propane from our dealer. Its 2.05 per gallon. We've had our stove 2 seasons, and have burned about 600 gallons less both years. In those two years, we've burned about 4.5 tons a season . I've been buying pellets from woodpellets.com, it might not be the absolute cheapest, but when I factor in the delivery, its a good value to me. Its very close to wash at these prices. We like the feel of the stove, but I think this year I wont get excited if my wife turns on the furnace.

Anyone else seeing the same numbers?

We live in Central NJ
 
propane here is $1.40-1.50
pellets are $170/ton on up.
pellets still cheaper by a bit.
 
Put your prices for the propane & the pellets (including the delivery cost) into this calculator, and estimate the efficiency at 80% for both (unless you know the exact figures), and I think you'll see that the wood pellets would have to be MORE than about $380/ton for the propane to be cheaper.

At those prices for pellets & propane, I'd be burning a LOT of pellets.

http://pelletheat.org/pellets/compare-fuel-costs/
 
I may be wrong but I have never heard anybody say they 'curled up in front of the propane furnace on a chilly winter's night'...

I'd vote for pellets even if they were a little more $$$... now if I could just get the wife on that bearskin rug in front of the stove...
 
imacman said:
Put your prices for the propane & the pellets (including the delivery cost) into this calculator, and estimate the efficiency at 80% for both (unless you know the exact figures), and I think you'll see that the wood pellets would have to be MORE than about $380/ton for the propane to be cheaper.

At those prices for pellets & propane, I'd be burning a LOT of pellets.

http://pelletheat.org/pellets/compare-fuel-costs/

I know the calculator will give an answer, but in the end, all said and done, my propane and pellet bills dont lie. For two seasons, by using the pellet stove, we have burned around 600 gallons less propane then the prior years before the stove. Thats about $1200 at 2.05 per gallon. woodpellets.com is delivering today for $264 / ton. Burning about 4 tons a season, thats about $1000. Its just not the big savings we had when propane was 2.50 a gallon.

I'm still going to order pellets, and use them, but its just not the savings we had for the past 2 years. And it pushed out the payback on my stove. But you cant complain about overall lower energy cost.

And believe me, I wish we had bought a stove 10 years ago. Its one the best things Ive bought in years.
 
The dollar savings in your pocket may not be as great. However burning pellets does more to support our economy, independence and way of life.
Spend it here rather than the Middle East.
 
I figure that I will save about $250 for the year burning pellets 8 tons of pellets versus propane. When we use pellets, we are definitely more comfortable. We keep our main living areas two to three degrees warmer than what we would if we just used propane. The pellet insert is in our living room which is open into the dining room and kitchen. This is where we spend the majority of our time. The pellet boiler is used for heating the entire house, in floor heat in the garage (usually keep it between 40 and 45), and our hot water as well. We basically do not use any propane during the heating months except for the clothes dryer.

Even if pellets were just a little more expensive, I would still use pellets because of the comfort factor. Not to mention, spending our money with someone other than the oil companies.
 
I agree,.I like to burn pellets (but enjoy burning wood a little more) but one thing we never consider is how much electricity we use.... my electric does go down in the fall but goes up a little in the winter.... I may be wrong but I think my stove runs about 20 bucks a month? ... that being said forced air is Prolly a wash or more... but people who have baseboard should take that into account when calculating savings......
My stove will always win out for me because where it is its pellets vs electricity!
 
Just to be sure you are running the numbers right, here are the calculations. I do not know your furnace's efficiency, and I am guessing your stove is around 80%.

Compare the cost of 1 million BTU's of heat:

We know propane is 91,000 BTUs/gallon. Propane furnace w/propane at $2.05 per gallon, 90% efficient fireplace
(1,000,000 / 91,000) x $2.05 / .90
= $25.03

We know pellets are 16,400,000 BTUs/ton. Pellet stove w/pellets at $230/ton, 80% efficient stove
(1,000,000 / 16,400,000) x $230 / .8
= $17.53
 
Wachusett said:
The dollar savings in your pocket may not be as great. However burning pellets does more to support our economy, independence and way of life.
Spend it here rather than the Middle East.

Damn that Middle East propane! That calculator is great for a guide, but as the OP says, the bills dont lie. At least with pellets your a little more sustainable and comfortable
 
dac122 said:
Just to be sure you are running the numbers right, here are the calculations. I do not know your furnace's efficiency, and I am guessing your stove is around 80%.

Compare the cost of 1 million BTU's of heat:

We know propane is 91,000 BTUs/gallon. Propane furnace w/propane at $2.05 per gallon, 90% efficient fireplace
(1,000,000 / 91,000) x $2.05 / .90
= $25.03

We know pellets are 16,400,000 BTUs/ton. Pellet stove w/pellets at $230/ton, 80% efficient stove
(1,000,000 / 16,400,000) x $230 / .8
= $17.53


Thank you for the equation, they are hard facts and don't lie...
The problem is this - a lot of people don't realize that the dove and furnace don't operate the same .... for ex, I can use my furnace with forced air and it. Will heat all of my rooms and shut off. With a stove I have to run it all day every day. At. x setting to keep the rooms furthest away reasonable .... so while pellets appear cheaper I may use 6 ton vs 700 gallons of oil .. I love my stove (s) but with pellets I think people should def "want" to burn them for more than just saving money because some will be surprised..
 
iceman said:
dac122 said:
Just to be sure you are running the numbers right, here are the calculations. I do not know your furnace's efficiency, and I am guessing your stove is around 80%.

Compare the cost of 1 million BTU's of heat:

We know propane is 91,000 BTUs/gallon. Propane furnace w/propane at $2.05 per gallon, 90% efficient fireplace
(1,000,000 / 91,000) x $2.05 / .90
= $25.03

We know pellets are 16,400,000 BTUs/ton. Pellet stove w/pellets at $230/ton, 80% efficient stove
(1,000,000 / 16,400,000) x $230 / .8
= $17.53


Thank you for the equation, they are hard facts and don't lie...
The problem is this - a lot of people don't realize that the dove and furnace don't operate the same .... for ex, I can use my furnace with forced air and it. Will heat all of my rooms and shut off. With a stove I have to run it all day every day. At. x setting to keep the rooms furthest away reasonable .... so while pellets appear cheaper I may use 6 ton vs 700 gallons of oil .. I love my stove (s) but with pellets I think people should def "want" to burn them for more than just saving money because some will be surprised..

Yes, this calculation does not take into account comfort. But to be accurate air distribution has a cost as well via electric used. Your furnace likely has a larger wattage transformer, igniter and blower. So the cost differential per million BTU is somewhat more in favor of your pellet stove than shown.
 
dac122 said:
iceman said:
dac122 said:
Just to be sure you are running the numbers right, here are the calculations. I do not know your furnace's efficiency, and I am guessing your stove is around 80%.

Compare the cost of 1 million BTU's of heat:

We know propane is 91,000 BTUs/gallon. Propane furnace w/propane at $2.05 per gallon, 90% efficient fireplace
(1,000,000 / 91,000) x $2.05 / .90
= $25.03

We know pellets are 16,400,000 BTUs/ton. Pellet stove w/pellets at $230/ton, 80% efficient stove
(1,000,000 / 16,400,000) x $230 / .8
= $17.53


Thank you for the equation, they are hard facts and don't lie...
The problem is this - a lot of people don't realize that the dove and furnace don't operate the same .... for ex, I can use my furnace with forced air and it. Will heat all of my rooms and shut off. With a stove I have to run it all day every day. At. x setting to keep the rooms furthest away reasonable .... so while pellets appear cheaper I may use 6 ton vs 700 gallons of oil .. I love my stove (s) but with pellets I think people should def "want" to burn them for more than just saving money because some will be surprised..

Yes, this calculation does not take into account comfort. But to be accurate air distribution has a cost as well via electric used. Your furnace likely has a larger wattage transformer, igniter and blower. So the cost differential per million BTU is somewhat more in favor of your pellet stove than shown.



You are absolutely right my electricity bill shows my furnace and stove .... the difference isn't as much as people might think .. due the furnace being wired differently... but yes you are right... for me I like burning pellets and wood so I learned to only use the furnace when absolutely necessary... which equates to less than 100 gallons a year...
 
I'll preface by saying I love my stove, and am going to use this winter. I'm a Mechanical Engineer, believe me, I've ran the numbers every way to justify buying the stove. The comfort factor from the stove is worth it.

But for my house, regardless of what a spread sheet tells me, based on two years of receipts for propane and pellets, it still comes down to buying 600 gallons of propane, or 4 tons of pellets.

My point was that that energy prices in our area seem to have pulled back relative to pellets, and its close enough for me not to get excited if someone forgets to load the stove and the furnace kicks on.

My guess is pellets sales are lagging this year, I got an email from pelletsales with a discount coupon. I've never seen them do that in September, what I would think is a peak ordering time.
 
joe_pinehill said:
I'll preface by saying I love my stove, and am going to use this winter. I'm a Mechanical Engineer, believe me, I've ran the numbers every way to justify buying the stove. The comfort factor from the stove is worth it.

But for my house, regardless of what a spread sheet tells me, based on two years of receipts for propane and pellets, it still comes down to buying 600 gallons of propane, or 4 tons of pellets.

My point was that that energy prices in our area seem to have pulled back relative to pellets, and its close enough for me not to get excited if someone forgets to load the stove and the furnace kicks on.

My guess is pellets sales are lagging this year, I got an email from pelletsales with a discount coupon. I've never seen them do that in September, what I would think is a peak ordering time.

There are so many variables to these equations it almost impossible to list... I like to burn... I have done improvements as far as insulation goes and it made a big difference ... can only guess how it affected my oil bill. But I try not to buy oil unless I catch it cheap. A few weeks ago I got it at 2.09.... its now around 2.50 ... but with about 12+ cords of wood and and 2 tons of pellets I am sitting pretty good .... gonna get another ton or 2 of skies and will be good for 2 years pellet wise and 3 wood wise
 
I will burn pellets this year

For a few reasons.......
It's just me and the dog in here,
Oil is currently $2.52 a gallon,
Propane is $3.08 a gallon + $7.00 (Regulatory charge and Transport Fuel Charge) that is directly off last months delivery bill.
I like the stove running in the living room,
Being a "Man of Girth" I can use all the physical activity I can get (hauling 4 tons of pellets into basement does me good)

Go with what makes you feel better.

---Nailer---
 
nailed_nailer said:
I will burn pellets this year

For a few reasons.......
It's just me and the dog in here,
Oil is currently $2.52 a gallon,
Propane is $3.08 a gallon + $7.00 (Regulatory charge and Transport Fuel Charge) that is directly off last months delivery bill.
I like the stove running in the living room,
Being a "Man of Girth" I can use all the physical activity I can get (hauling 4 tons of pellets into basement does me good)

Go with what makes you feel better.

---Nailer---



At those prices and todays economy I would do the same thing if I was you
 
Another thing to consider (I do) is propane prices are EXTREMELY vulnerable to external influences. One misplace bomb, leak in a pipeline (the current cause for oil spiking up to $78/b), a hurricane (there's 3 in the Atlantic right now), a prolonged cold spell, or, God forbid, some good economic news surfaces and watch the price go through the roof. My point is, propane is a by-product of oil distillation into motor fuels. Lately, if someone sneezes the wrong way oil $pike$. We're sitting at $75-$78 now. What do you think the price of oil would be if the unemployment were to head back down to the high 7%-low 8% range and people started to pay their mortgages again?

Pellets are relatively safe from huge swings in pricing. Provided you buy in bulk during the off-season, you have a good and stable source of fuel to heat your home.

I also have a central forced air propane furnace. In my area, I've seen a $0.65-$0.75/gal swings in price for propane during the heating season. I used to use 850 gals/year, now I'm down to 175-185 gal/year (cooking, clothes drier and hot water are propane).

On top of saving money (I've surpassed my ROI), I''m happy that I'm using less propane and the pellets I buy are produced 75 miles from my house.
 
TboneMan said:
Another thing to consider (I do) is propane prices are EXTREMELY vulnerable to external influences. One misplace bomb, leak in a pipeline (the current cause for oil spiking up to $78/b), a hurricane (there's 3 in the Atlantic right now), a prolonged cold spell, or, God forbid, some good economic news surfaces and watch the price go through the roof. My point is, propane is a by-product of oil distillation into motor fuels. Lately, if someone sneezes the wrong way oil $pike$. We're sitting at $75-$78 now. What do you think the price of oil would be if the unemployment were to head back down to the high 7%-low 8% range and people started to pay their mortgages again?

Pellets are relatively safe from huge swings in pricing. Provided you buy in bulk during the off-season, you have a good and stable source of fuel to heat your home.

I also have a central forced air propane furnace. In my area, I've seen a $0.65-$0.75/gal swings in price for propane during the heating season. I used to use 850 gals/year, now I'm down to 175-185 gal/year (cooking, clothes drier and hot water are propane).

On top of saving money (I've surpassed my ROI), I''m happy that I'm using less propane and the pellets I buy are produced 75 miles from my house.

I agree with you 100%!!!! TBoneMan. You could add a solar hot water system and cut your propane bill further. Take a look at www.heliodyne.com they will show dealers in your area. If you cant find this brand, second best is AET. You can do a search for them and look up their dealers. Just an idea.

AR
 
ARGlock said:
TboneMan said:
Another thing to consider (I do) is propane prices are EXTREMELY vulnerable to external influences. One misplace bomb, leak in a pipeline (the current cause for oil spiking up to $78/b), a hurricane (there's 3 in the Atlantic right now), a prolonged cold spell, or, God forbid, some good economic news surfaces and watch the price go through the roof. My point is, propane is a by-product of oil distillation into motor fuels. Lately, if someone sneezes the wrong way oil $pike$. We're sitting at $75-$78 now. What do you think the price of oil would be if the unemployment were to head back down to the high 7%-low 8% range and people started to pay their mortgages again?

Pellets are relatively safe from huge swings in pricing. Provided you buy in bulk during the off-season, you have a good and stable source of fuel to heat your home.

I also have a central forced air propane furnace. In my area, I've seen a $0.65-$0.75/gal swings in price for propane during the heating season. I used to use 850 gals/year, now I'm down to 175-185 gal/year (cooking, clothes drier and hot water are propane).

On top of saving money (I've surpassed my ROI), I''m happy that I'm using less propane and the pellets I buy are produced 75 miles from my house.

I agree with you 100%!!!! TBoneMan. You could add a solar hot water system and cut your propane bill further. Take a look at www.heliodyne.com they will show dealers in your area. If you cant find this brand, second best is AET. You can do a search for them and look up their dealers. Just an idea.

AR

I'm already running an on-demand hot water system. I've calculated a saving of 60% vs. my old propane burner tank system (propane usage, not cost).

I'd have to believe a system like this would run in the $3,000-4,000 range. If it cut my total propane use another 50%, my ROI would be 12-15 years. That's a bit long.
 
Sorry if this has been covered, but which one is more sustainable, burning wood pellets or propane from petroleum. Which one lets you store the most fuel for winter? Which one is easier to get your self, and manage.

I know propane is cleaner and easier once, you have your propane, but my choice would always be pellets.
 
TboneMan said:
...Pellets are relatively safe from huge swings in pricing. Provided you buy in bulk during the off-season...

Unless you factor in last year when pellets in the North East were selling for $300/ton and now this year down to $200 or even lower at the Big Box stores. I guess it all depends on how one defines a huge price swings.
 
At least with pellets, I can shop around and buy a winter's supply at what I consider will be about one of the best deals I might be able to get. With oil, I can only get a limited amount as I am limited in my storage options. Since swithing to pellets for my primary heat, I have used less than a tank of oil in 15 months. I filled my tank this past summer when oil was at it's lowest cost, and I bought my pellets when the local grain store was having a summer sale. Full oil tank and a Winter's worth of pellets safely stored in my dry garage. I won't have to play with the big boys when they decide to cause an issue and have energy cost spiking . At least for now, this is one game I am on top of. Best of all, I really enjoy the heat from the pellet stove.
 
As to the variability of propane prices, note that in most places people can lock the prices in via contract, usually July or August for the heating season.
 
Status
Not open for further replies.