Proof Pellets Save Money Over Oil?

[terryjd98]

For all the people that question if a wood pellet stove saves money over oil I was wondering if this would be proof. I am a pellet stove newbie, have everything but haven't installed the stove yet, should be in this week, doing install myself.
I had an oil fill on Oct. 27 and another fill up today. The thermastate set at 15c = 59F. use electric space heater in family room and upstairs always warmer anyways, I will convert everything to US. I used 369 liters = 97.48 US gallons. Price today was 82.9 cents a liter = $3.73 Canadian Gallon = $3.09 US Gallon. So for 33 days it cost me $305.00 or $9.24 a day. Temp has been hovering in the 39 F daytime to mid to low 20s F at night.
So how does this compare to what pellets have been costing everybody for a months use? I have a feeling that if I was using pellets I would have been around the bag a day mark that everybody says which worse case would have been around $180.00 for the month. This would have been $125.00 savings. How do thse figures sound?

 

[wilbilt]

I am not one to over-analyze anything.

I know from past experience it takes 150 gallons of LPG - give or take - to heat my home for a month. The last fill cost about $2.35/gallon. That's about $350/month.

One bag of pellets heats my home for 24+hours. At $5.08/bag, that's $152/month.

It also costs less to run the pellet stove fan than it does to run the furnace blower.

I know it's not a direct comparison to oil, but that's how it works here.

 

[Doocrew]

I am not one to over-analyze anything.

I know from past experience it takes 150 gallons of LPG - give or take - to heat my home for a month. The last fill cost about $2.35/gallon. That's about $350/month.

One bag of pellets heats my home for 24+hours. At $5.08/bag, that's $152/month.

It also costs less to run the pellet stove fan than it does to run the furnace blower.

I know it's not a direct comparison to oil, but that's how it works here.

I agree. When the price of oil starts to rise this winter, you will realize even more savings. When you start to factor in the stove cost, all these figures go in a different direction. I would continue to burn pellets even if there were no savings. I would rather spend my money on a locally grown by-product than give it OPEC.

 

[terryjd98]

I am not one to over-analyze anything.

I know from past experience it takes 150 gallons of LPG - give or take - to heat my home for a month. The last fill cost about $2.35/gallon. That's about $350/month.

One bag of pellets heats my home for 24+hours. At $5.08/bag, that's $152/month.

It also costs less to run the pellet stove fan than it does to run the furnace blower.

I know it's not a direct comparison to oil, but that's how it works here.

I agree. When the price of oil starts to rise this winter, you will realize even more savings. When you start to factor in the stove cost, all these figures go in a different direction. I would continue to burn pellets even if there were no savings. I would rather spend my money on a locally grown by-product than give it OPEC.

I really don't factor in the price of the pellet stove or pipe so much. If had to buy a furnace I would be out the $3000.00 anyways. But with that factored in saving $150.00 a month for 6 months say, maybe a bit more savings if oil goes up any I will still be looking at a 3 year payback on the investment, I am happy with that time frame.

 

[krooser]

My start-up costs were pretty low since I bought a used stove but I'll own that stove a long time. Even if I stop using pellets I can sell the stove and recover much of my investment.

As long as my house is warm , and the Arabs don't start selling pellets, I'll keep burning pellets...

 

[itworks]

There are just to many variables in trying come up with an exact conclusion that it's cheaper to stay comfortable burning pellets vs oil.
I've read many, many threads on this forum, where the responders say they've installed fans through their homes to circulate the heat, they've cut through walls and floors to achieve even distribution, they close off rooms they're not using, they like to view the flame, they want to keep their money local, they want to be environmentally friendly. It's their homes, and money and and I respect their decisions. It appears to me that current prices indicate if you heat your home with LP or electricity, it's cheaper to heat with $300 pellets. If you have NG, or HHO, and have a relatively efficient system. you probably will not achieve a cost savings burning pellets in this environment. And then there are those that say current oil prices will go higher, and that pellet prices will fall. I don't have a crystal ball, maybe they're right , but maybe they're wrong.

I've said this many times on this forum that for me the best reason to invest in a pellet stove, and have a full season of pellets on hand is to have a choice of what to use.

 

[nmerrill]

First fire on Oct 27th. I burned 39 bags by Nov 26th for a total of 0.78 ton and 1.25 bags/day. Burning Boreal pellets out of Quebec for about $5.35/day, plus electric.

Heating 1800Sqft and DHW via radiant floor and baseboard. The radiant floor is currently uninsulated below, and above a 2 car garage - not an efficient set up! Hope to insulate next week..

A few weeks of below normal temps in there too.

Nat
Vermont
PB105 #389

 

[Souzafone]

To try and get better grip, realize that you should buy a years supply up front, off season, to maximize savings. If you're comparing to oil, this is where pellets have a huge advantage because you simply can't buy 1 or 2 years worth of fuel at the lowest possible price, you must roll the dice and gamble at pre-buying at a rate that's higher than current, or shop each time and hope there's no dramatic increases. Right now oil is as low as it's been for awhile, but how long will that last? But the pellets I bought last summer will still be the same price next year, because I already have them!

 

[mischinski]

I am not sure you can call this proof as this heating season is only beginning, but check my math:

I have 5 seasons of oil heating behind me and I have kept all the bills. I average slightly over 700 gal / season. So when my "pre-buy came in in the summer I was offered an early bird special of $4.449/gal. So simple math - I was looking at a $3,114 heating bill for 2008/2009. So if I divide the $3,114 by $250/ton of pellets I could purchase 12.5 tons. Assume worst case I need 4 tons - savings = $2,114 this season if I had done the pre-buy. Well I did not, so oil is now $2.069 in my parts. So if it stays at that price my season oil cost would be $1,448. Still a $448 difference from 4 tons of pellets. I am glad I have the option and will continue to burn my pellets and top off the oil tank soon as my back up.

 

[globewyre]

I just got a surprise fill up even though I called and ask them not to. It was only 45 gallons, most of it was used last year. Even though oil price are down accross the country my bill was still 2.99 a gallon.
If I used the same amount of oil this year as last year this bill would have been $500.

 

[cac4]

I'm saving money because I'm using less energy. nevermind the "price per BTU" comparison. (even so, historically, pellets are cheaper most of the time, btu for btu, even if they may not be this month; that'll change).

I've been burning for about a week, running around with a thermometer to see how the heat is moving around, and so forth. One thing I noticed yesterday: my unheated, unfinished basement is 10 degrees cooler than it was when the furnace was running down there. And thats a big, open, 800+square foot area. Its not meant to heat this utility space; but it does...by more than I thought.
Sure, I'd get the same effect from an oil-fired stove...but is there any such thing? If there is, I've never seen one.

 

[lass442]

There are just to many variables in trying come up with an exact conclusion that it's cheaper to stay comfortable burning pellets vs oil.
I've read many, many threads on this forum, where the responders say they've installed fans through their homes to circulate the heat, they've cut through walls and floors to achieve even distribution, they close off rooms they're not using, they like to view the flame, they want to keep their money local, they want to be environmentally friendly. It's their homes, and money and and I respect their decisions. It appears to me that current prices indicate if you heat your home with LP or electricity, it's cheaper to heat with $300 pellets. If you have NG, or HHO, and have a relatively efficient system. you probably will not achieve a cost savings burning pellets in this environment. And then there are those that say current oil prices will go higher, and that pellet prices will fall. I don't have a crystal ball, maybe they're right , but maybe they're wrong.

I've said this many times on this forum that for me the best reason to invest in a pellet stove, and have a full season of pellets on hand is to have a choice of what to use.

I couldn't have said it better myself. This is exactly the way I think of it. Having options is a thing of beauty, and these days, a luxury.

 

[wilbilt]

I couldn't have said it better myself. This is exactly the way I think of it. Having options is a thing of beauty, and these days, a luxury.

Absolutely. Having choices can save the day when times get tough.

Did I mention my stove was free?

 

[Kenny1]

Getting back to a BTU is a BTU....

assuming the oil furnace is 82% efficient, and the pellet stove is 70% efficient, $0.829/l oil works out to pellets at $318/ton.


Cheers

Kenny

 

[Wet1]

Sure, I'd get the same effect from an oil-fired stove...but is there any such thing? If there is, I've never seen one.

I wasn't joking, they're out there (I've seen them in person). Do a Google search.

 

[save$]

Found this on a web site.
"According to the Forest Products Laboratory, #2 Fuel Oil has a Net Heating Value of 115,000 Btu/gal and Premium Wood Pellets have a Net Heating Value of 13.6 million Btu/ton. Btu is a unit of energy to describe the heat value of fuels.
From an energy standpoint it would take 118.26 gallons of #2 Fuel Oil to provide the same heating energy as one ton of Premium Wood Pellets.
118.26 gal of fuel oil x 115,000 Btu/gal = 13.6 million Btu = one ton of wood pellets"
At 50 bags per ton, this equates to 2.36 gallons per bag of wood pellets."

I am able to top off my oil tank at $2.29 per gallon. If the above numbers are accurate, then pellets costing more than $270. a ton cost more to heat. (not considering delivery cost and your labor.)
There are many other things to consider. Among them is comfort. My family room and office are now warm. Not so with oil. I can sit around in shorts and be real comfortable. That view of the fire has a comforting effect no furnace can make. Having been a wood burner for many years prior to getting a furnace, tending the stove just seems to be the right thing to be doing when it is cold outside.

 

[Wet1]

#2 fuel oil has 139,000 btu/gal., at least that's the number I've always seen used in references.

 

[davevassar]

Here's my proof. Before my pellet stoe was installed, I would burn about 100 gallons of oil per month keeping my house at 69 degrees.

At today's cost, that is $249 per month.

With my pellet stove, I burn about 20 gallons of oil per month, and 30 bags of pellets.

So, with the pellet stove, I spend $217.80 per month. I save $31 per month. BUT, the real benefit to me is the comfort. With the pellet stove, the house stays right around 72 degrees compared to 69.

 

[McdaMahon]

CAC4 "Sure, I'd get the same effect from an oil-fired stove...but is there any such thing? If there is, I've never seen one."[/quote] Here is a oil stove (broken link removed to http://reading.craigslist.org/wan/942674312.html) keystoker oil stove (broken link removed to http://www.keystoker.com/oilstove.html)

 

[MCPO]

I have an oil stove (high tech) catylitic type sitting in my garage that I just replaced with a pellet stove in April.
Oil at that time was $4.00 a gal but now I`m not sure I did the right thing switching to pellets. I might have reacted too quickly however I did manage to find a reasonably new Harman P 38 pellet stove and pipe(with 37 bags of pellets for $500.
I`m gonna burn the other 4 tons of pellets I have this winter and by April I might re-access things and if oil stays reasonable I would definitely put the oil stove back in. It beats the hell out of these crude pellet stove designs.
It`s my understanding that oil prices will stay reasonable throughout the slowdown that is projected to last 2 years.

 

[itworks]

I have an oil stove (high tech) catylitic type sitting in my garage that I just replaced with a pellet stove in April.
Oil at that time was $4.00 a gal but now I`m not sure I did the right thing switching to pellets. I might have reacted too quickly however I did manage to find a reasonably new Harman P 38 pellet stove and pipe(with 37 bags of pellets for $500.
I`m gonna burn the other 4 tons of pellets I have this winter and by April I might re-access things and if oil stays reasonable I would definitely put the oil stove back in. It beats the hell out of these crude pellet stove designs.
It`s my understanding that oil prices will stay reasonable throughout the slowdown that is projected to last 2 years.

You're one heck of a shopper! That's a great price you paid for your stove, piping and pellets. I just don't understand why you mothballed your high tech oil burner. As I've stated ad nauseum, the best reason to own a pellet stove is to have a choice of what fuel you'll burn. IMHO, I would reinstall your oil burner, keep the pellet stove clean, and maintain a full tank of oil at current prices, and hopefully some time in the future you can buy a season of pellets at a reasonable cost.

 

[VTVt]

HELLO ... I have been putting 30 gallons of heating oil in my bldg EVERY DAY (and use every bit of it!) while awaiting my outdoor pellet boiler to be hooked up.... NOW all hooked up, I have been using FIVE BAGS of pellets every 24 hrs so far... 30 gal of fuel... about 90 bucks.... 5 bags of pellets = 30 BUCKS! there is my proof... SO OK right now, I am thinking if temps drop below zero not sure I can push the heat I need in here so may have to burn a little fuel... or take my hot water off the pellet system to use all heat for boiler... not sure yet... but either way the 60 bucks i am saving EACH DAY with fuel at about 3 dollars a gallon, I have no complaints!

 

[Lobstah]

"30 gal of fuel… about 90 bucks.... 5 bags of pellets = 30 BUCKS!"

fuel in Mass is down under $2/gal...

Jim

 

[wwert]

Even if it cost the same or a little more I would still burn pellets. Cuts down on pollution and you actually get to stay warm. Don't know about you but 59 degrees is way to cold for me. The older I get the more I like warmth.

 

[MButkus]

You have to remember that a pellet stove (closed heating system against an open fireplace) heats the area you are in. An oil furnace, unless you have lots of zones, heats many rooms. I don't know what happens if you have two floors and one stove. My living room is 73.5 degrees right now with the stove on #2, outdoor temp is 28 degrees. I use about a little less then a bag a day. So the oil furnace never turns on to heat the house. It is my hot water heater and baseboard heat.. so it kicks on to maintain the furnace temp and when anyone uses hot water.
I used to be on a monthy oil budget, but it has been so long ago (1994?), but I do get my 150 gal. of oil every year. My electric is $150 a month but I have a electric oven and range. So does it save... I saw people in terror with $600 a month oil estimates this Sept. I had my 2 tons of pellets already and paid for ($530) and I waited (lucky me) to get my oil in late Oct. for $2.70 a gallon.
So while people whine and cry about their electric heat bills or their oil payments going up.. I fill my pellet stove and stay warm.