Wood pellet prices 2026: costs fall as supply recovers
After two years of elevated prices, wood pellet costs are easing. Here's what biomass boiler owners should know.
Wood pellet prices have fallen back towards their pre-crisis levels in early 2026, offering some relief to the estimated 100,000+ UK households with biomass boilers.
The current UK average sits at around 7.2p per kWh on a delivered energy basis — down from the 9.5p seen at the peak of the energy crisis in 2022.
Why have prices fallen?
- Increased European production capacity — new pellet mills in Scandinavia and the Baltics have added significant supply
- Weaker demand — milder winters in 2024–25 have reduced consumption
- Softwood availability — bark beetle damage in Central Europe has paradoxically increased the supply of salvage timber suitable for pellet production
What to watch
Pellet prices are highly seasonal. Buying in summer (April–August) typically saves 10–15% versus autumn/winter delivery. If you have storage capacity, ordering now is likely to be cost-effective.
ENplus certification
When comparing suppliers, look for ENplus A1 certification. This guarantees pellet quality — ash content below 0.7%, moisture below 10%, and consistent calorific value. Lower-grade pellets can cause boiler faults and reduce efficiency.