

Is a pellet stove cheaper than heating with gas?
With rising energy prices and a growing focus on sustainability, more and more households are asking themselves: is a pellet stove cheaper than heating with gas? In this article, we dive deep into the cost comparison between a pellet stove and traditional gas heating. We discuss not only financial aspects, but also comfort, maintenance and environmental impact.


What is a pellet stove?
A pellet stove is a heating appliance specifically designed to run on wood pellets. These pellets are small cylindrical pellets made from compressed sawdust and other wood waste. They are automatically introduced into the combustion chamber via an auger mechanism. Combustion is electronically controlled, ensuring efficient and controlled heat output.
Advantages of a pellet stove:
- Energy efficiency: efficiency as high as 90%.
- Durable: runs on renewable fuel (wood pellets).
- Low CO₂ emissions: more climate-friendly than fossil fuels.
- Automatic operation: programmable and thermostatically controllable.
- Lower consumption: thanks to efficient combustion technology.
Costs of heating with a pellet stove
The total cost of using a pellet stove depends on several factors such as the purchase price, installation costs, maintenance and, of course, the price of the wood pellets themselves.
Purchase and installation
- Purchase price: between €1,500 and €4,000 depending on brand and power.
- Installation costs: average €800 to €1,500 including flue.
- Total initial investment: around €2,500 to €5,500.
Wood pellet consumption costs
One tonne of wood pellets costs on average between €300 and €400. An average household consumes about 2 to 3 tonnes per year, depending on insulation and intensity of use. This means annual fuel costs between €600 and €1,200.
Maintenance costs
An annual servicing costs around €100 to €150. Regular cleaning (ash removal) is necessary for optimal operation.
Cost of heating with gas
Natural gas heating, still the most common heating method in the Netherlands, has its own cost structure.
Purchase and installation of central heating boiler
- Purchase price of central heating boiler: between €1,500 and €3,000.
- Installation costs: €1,000 to €1,500 on average.
- Total initial investment: around €2,500 to €4,500.
Gas energy consumption
An average household consumes around 1,200 m³ of natural gas annually for heating. At an average gas price of about €1.30 per m³ (price level in early 2024), this amounts to about €1,560 per year in gas costs for heating alone.
Boiler maintenance costs
Annual maintenance on a central heating boiler costs on average between €80 and €120 a year.
Cost comparison: pellet stove vs gas heating
| Cost item | Pellet stove | Natural gas heating |
|---|---|---|
| Purchase + installation (one-off) | €2.500 - €5.500 | €2.500 - €4.500 |
| Energy consumption (annual) | €600 - €1.200 | €1,560 (at current rates) |
| Maintenance (annual) | €100 - €150 | €80 - €120 |
| Total annual running costs* | *from ~€700/year* | *from ~€1,640/year* |
*Note: exact amounts may vary depending on house type, insulation level and market prices.*
Sustainability: pellet stove vs gas heating
Sustainable heating with pellets is often praised for its use of renewable resources such as wood waste. Although burning releases CO₂, this is offset by the fact that trees absorb CO₂ during their lifetime - the so-called 'CO₂-neutral' principle.
Natural gas, on the other hand, is a fossil fuel that contributes to climate change by directly emitting greenhouse gases without offsetting.
Sustainability benefits pellet stoves:
- Lower CO₂ profile than natural gas;
- Milieu Centraal confirms lower environmental impact when used properly;
- Less dependence on fossil fuels;
- Possibility of subsidy through ISDE scheme;
- Read more about pellet stove subsidies here →
Disadvantages of pellet heating compared to gas heating
Of course, there are also some disadvantages to using a pellet stove compared to traditional gas heating:
- Not suitable as main heating without buffer tank or central heating pellet boiler;
- Need for pellet storage space;
- Noise due to fans or auger mechanism;
- Less comfortable in terms of temperature control compared to thermostat-controlled central heating systems;
- Cleaning requires more discipline;
Do you really save money with a pellet stove?
In short: yes - especially with rising gas prices or if your home is well insulated AND you switch to an efficient pellet solution such as a central heating pellet boiler or hybrid system combined with solar panels or heat pump.
Additional savings opportunities:
- Saving energy with pellets → read how to get optimal efficiency!
- Possibility of subsidy through Sustainable Energy Investment Subsidy (ISDE);
- Bearing annual consumption through smart programming;
- Connection to existing radiators via central heating pellet boiler possible;
- Less dependence on energy market prices;
Conclusion: Is a pellet stove cheaper than gas?
Energy comparison: pellet stove versus gas heating shows that pellets can be more economical than natural gas in the long run - especially with rising energy prices.
Moreover, using renewable fuels such as wood pellets offers not only financial benefits but also ecological gains such as lower carbon emissions and less dependence on fossil sources.
Keep in mind that the efficiency is highly dependent on your living situation, insulation level and heating behaviour. So get proper advice from a certified installer before switching to this form of sustainable heating.
Frequently asked questions on "Is a pellet stove cheaper than heating with gas?"
- Does a pellet stove really reduce energy costs?
- Yes, in many cases, annual heating costs with pellets are lower than those with natural gas use - especially in well-insulated homes.
- Will I get a subsidy for my pellet stove?
- Yes, you can apply for a subsidy through the ISDE scheme provided you meet certain conditions such as type of appliance and installation by approved installer.
Check here the current ISDE rules at RVO → . - Does burning pellets cause air pollution?
- Modern pellet stoves have filters and comply with strict emission standards, limiting particulate emissions.
However, regular maintenance is essential. - Am I stuck with one supplier for pellets?
- No, wood pellets are widely available at DIY stores as well as online.
Do look out for quality marks such as ENplus-A1 for quality. - Does a pellet stove also provide hot water?
- A standard stove does not; for that, you need a central heating pellet boiler connected to your central heating system.
You can read more on our page about
Central heating pellet boilers → click here!.





