Wood pellets are environmentally friendly and is more than three times as efficient as cordwood. Pellet fuel is a biomass product made of renewable substances, such as recycled wood waste. Plus its low moisture content allows for maximum burn and minimum particulate exhaust – which is better for air quality than woodburning stoves or fireplaces.

Pellet fuel can be used in fireplace inserts, freestanding stoves and even furnaces. Therefore, it can be used to heat specific zones in your house, allowing you to cut back your central heating. Many pellet-burning appliances rely on electricity, which according to the U.S. Energy Information Administration, will rise about 4 percent this winter in costs, which is a cheaper option than propane, natural gas and heating oil.

The Pellet Fuels Institute website lets people compare fuel costs to see how pellets stack up to heating sources, such as coal, gas and wood.