How-to2 min read4 June 2026

Switch to Wood Pellets & Cut Your Heating Costs by 25%

Wood pellets cost 7.2p/kWh versus mains gas at 6.04p/kWh. Learn how to make the switch and reclaim hundreds from your annual heating bill.

With mains gas at 6.04p/kWh and electricity at 24.5p/kWh, UK homeowners are scrambling for cheaper alternatives. Wood pellets offer a practical middle ground at 7.2p/kWh—and for many households, they deliver genuine savings when paired with the right system.

Why Wood Pellets Work

If you heat with electricity or expensive heating oil (98.7p/litre), switching to a pellet boiler or stove could cut your heating costs by up to 25%. Pellets are denser than firewood, burn more efficiently, and produce consistent heat—making them ideal for homes that can accommodate a storage solution.

Three Steps to Switch

1. Check Your Space

  • You'll need room for a pellet boiler (typically kitchen or utility) or a standalone pellet stove
  • Storage requires a dry, ventilated area—a garden shed or cellar works well
  • Pellets come in 15kg bags; budget for 4–6 tonnes annually depending on your home's size and insulation

2. Understand the Upfront Cost

  • A pellet boiler costs £4,000–£8,000 fitted, but government grants may cover 25–40% through heat pump and renewable heating schemes
  • A pellet stove runs £2,000–£4,000 and suits supplement heating or smaller properties
  • Calculate payback: if you're currently spending £1,500/year on heating oil, you could recoup your investment in 3–5 years

3. Find Reliable Supply

  • Order pellets from certified suppliers; quality varies, so ask about moisture content (under 10% is essential)
  • Join a buying group to negotiate bulk discounts—many areas now have community pellet purchasing schemes
  • Stock up in summer when prices are lowest

Compare Your Options

If you're unsure whether pellets suit you, compare running costs across fuels:

Your Action Step

This week: Get a free boiler survey. Contact 2–3 installers for quotes on a pellet system. Ask specifically about available grants and local supply chains. Even if you stay with gas, this data shows exactly what you're saving.

Wood pellets aren't a magic fix, but for off-gas homes or those fed up with volatile heating oil prices, they're a tangible way to regain control of your heating costs.

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