Wood Pellet Vs. Kerosene Heating Costs

Identification

• When comparing the heating costs of wood pellets and kerosene, there are several factors you will need to consider, Cornell University explains. These include the cost per gallon or cubic foot, the energy content of the fuel and the efficiency of your heating appliance. Newer models of heating systems will typically have an efficiency rating of at least 85 percent, according to Cornell University; no heating system is 100 percent efficient.

Wood Pellet Costs

• The U.S. Department of Energy explains on its Energy Savers website that 1 ton of pellet fuel is equal to about 1 1/2 cords of firewood and that on average, homeowners that have a pellet appliance use two to three tons of pellet fuel annually. As of February 2011, the cost for wood pellet fuel was three to four dollars for a 40-lb. bag, according to the Energy Savers website.

Kerosene Costs

• Kerosene is a fuel oil that is sold by the gallon. To calculate the cost of kerosene, you will need to know the unit cost of the kerosene, the heat value of the kerosene and the fuel efficiency of the heating system, Cornell University explains. For example, if kerosene costs 89 cents per gallon at a value of 134,000 Btu and your heating appliance has a fuel efficiency rating of 85 percent, you will spend approximately $7.81 per million Btu of kerosene. This number is derived by multiplying the per unit cost of the kerosene by one million Btu and then dividing that number by the Btu per unit of kerosene and again by the fuel efficiency rating.

Considerations

• If you plan on using a heating appliance that runs on wood pellets, the U.S. Department of Energy explains that you need to make sure there is a retailer in your area that carries pellet fuel. Some appliance dealers will carry the pellets in their stores or can refer you to a store that sells wood pellets. Alternatively, you can find wood pellets at some home and garden stores or tree nurseries. When comparing costs of wood pellets and kerosene, Cornell University suggests that you ask retailers to provide you with fuel prices from the past several heating seasons, because there can be fluctuations in energy prices from year to year.