How much does a pellet furnace cost?
How much does a pellet furnace cost?
$2,500 – $12,000 average price (unit only)
$4,000 – $17,000 total installed cost
Pellet furnace prices
A pellet furnace costs $4,000 to $17,000 total, including the materials and installation labor. Pellet furnace prices range from $2,500 to $12,000 on average for the furnace alone. The wood pellet fuel for the furnace costs an additional $600 to $1,200 per year, depending on how much you use.
| Factor | Average cost |
|---|---|
| Furnace | $2,500 – $12,000 |
| Installation labor | $1,500 – $5,000 |
| Total cost | $4,000 – $17,000 |
Furnace
The cost of a pellet furnace is $2,500 to $12,000 for the unit alone, depending on the type, size, and efficiency. High-efficiency models cost more than average but may qualify for tax credits or rebates, which help lower the overall cost.
Installation labor
Most pellet furnace installers charge $1,500 to $5,000 for labor in addition to the furnace itself. Complex installations that involve new wiring or ductwork require more time and effort, resulting in higher labor costs.
If you don't have an existing HVAC system with ducts and vents, the cost to install new ductwork will add $2,400 to $6,600 to the project cost.
Pellet furnace cost factors
Several factors impact the cost to install a pellet furnace:
Size: The larger and more powerful a pellet furnace is, the more it will cost. Most pellet furnaces produce 8,000 to 80,000 BTUs per hour, depending on how many pellets you use.
Efficiency: Most pellet stoves operate at a 60% to 75% efficiency on average or up to 96.2% for premium models. This is lower than other types of furnaces.
Pellet volume: Buying large quantities of wood pellets in advance may qualify for discounts and lower rates, although you need a cool, dry place large enough to store them.
Rebates: Some wood pellet stoves and furnace installations are home improvements that qualify for a federal tax credit of 30% or up to $2,000. This rebate applies to higher efficiency models, so make sure to check if your furnace qualifies before installing.
Backup battery: Some pellet furnace models come with a 12-volt backup battery in case of power outages for an added fee.
Fuel
Wood pellets cost $60 to $10 per bag or $300 to $400 per ton. The average homeowner needs 2 to 3 tons to heat their home per year, which is equivalent to $600 to $1,200 per year on average.
Heating with wood pellets is usually cheaper than using propane, electricity, or oil but costs more than natural gas.
Maintenance
The potential long-term expenses of a pellet furnace include repairs and maintenance after installation. Make sure to remove ash and debris regularly and check for buildup and blockages. Regular maintenance can help extend your furnace's lifespan and prevent costly breakdowns.
A furnace tune-up service costs $70 to $200, or $150 to $500 per year. Maintenance fees normally cover minor repairs, an inspection, and a tune-up.
Cleaning a furnace costs $70 to $100 for a basic cleaning or $150 to $300 for deep cleaning.
Furnace repair costs $125 to $480 on average, but major repairs can extend into the thousands.
An ash vacuum costs $75 to $200 for basic models and can make cleanup easier than sweeping manually.
Pros and cons of a pellet furnace
A pellet furnace can be a great option for those who don't want to use oil, natural gas, or propane to heat their home. However, since modern pellet furnaces use some degree of electricity to operate, they may require a backup heating method or electricity source to operate during power outages.
| Pros | Cons |
|---|---|
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Pellet furnace vs. pellet stove
Not to be confused with a pellet furnace, pellet stoves cost $1,600 to $4,100 installed and are a smaller system that heats a room directly like a fireplace, as opposed to distributing heat through vents and ducts.
Pellet furnaces vs. other furnaces
On average, a new furnace costs $2,000 to $5,400 or up to $10,000 for a high-efficiency model. Compared to other fuels like propane or oil, the cost of wood pellets is relatively low. However, natural gas furnaces usually cost the least to install and run.
| Furnace type | Average installed cost | Average fuel cost per year |
|---|---|---|
| Pellet furnace | $4,000 – $17,000 | $600 – $1,200 |
| Propane furnace cost | $2,200 – $7,400 | $1,000 – $2,500 |
| Oil furnace cost | $2,500 – $10,000 | $1,000 – $1,750 |
| Gas furnace cost | $2,000 – $6,900 | $400 – $700 |
| Electric furnace cost | $1,900 – $5,600 | $1,600 – $2,200 |
Pellet furnace FAQs
What is a pellet furnace?
A pellet furnace is a heating system that burns compressed wood or biomass pellets to produce heat. These pellets are made from materials like sawdust and wood shavings, making them a renewable and sustainable energy source. Pellet furnaces can heat entire homes or provide supplemental heat, depending on the setup.
Unlike a pellet stove, a pellet furnace distributes heat throughout the home via vents and ductwork like a traditonal oil or gas furnace HVAC system.
How does a pellet furnace work?
A pellet furnace operates by storing wood pellets in a hopper and delivering them to a burn pot via an auger. The pellets ignite and burn efficiently with controlled airflow, producing heat that transfers to air or water for distribution throughout the home.
The furnace uses sensors and controls to regulate heat output and ensure efficient combustion. Vents reroute exhaust gases outside, and the system requires electricity to operate. Pellet furnaces offer a clean and efficient heating solution with low emissions, making them a sustainable alternative to traditional heating systems.
Can a pellet furnace burn pine pellets?
Pellet furnaces can burn pine pellets, but they may not be as efficient as hardwood pellets. Pine pellets can produce more ash and have a strong odor. You may need to make adjustments for optimal burning, and performance might vary due to moisture content and pellet quality.
Getting estimates from furnace installers
Follow these steps when searching for a furnace installer near you:
Look for pellet furnace installers with certifications from ASHRAE or NATE for quality assurance.
Choose licensed, bonded, and insured professionals with over 5 years in the field.
Check installer reviews on platforms like HomeGuide and Google.
Obtain and compare at least three written quotes from different HVAC companies.
Ensure you have a written contract and warranty before work commences.
Be cautious of unusually low quotes, as they often indicate subpar work or inexperience.
Questions to ask pellet furnace installers
Ask potential installers these questions to help you select the best company for the job:
Are you licensed, bonded, and insured to perform this work?
Do you have certifications such as NATE or ASHRAE specific to pellet furnace installation?
How many years of experience do you have installing pellet furnaces?
Have you installed this specific model or brand of pellet furnace before?
Will subcontractors be involved in the installation? If so, are they licensed and insured?
Are you familiar with local building codes and regulations for pellet furnace installations?
What is the estimated timeline for completing the installation?
Can you provide a detailed written estimate, including labor, materials, and additional fees?
Do you offer warranties for your installation work? If so, what does it cover?
Are there any ongoing maintenance services or packages available post-installation?
Can you provide references from previous customers who had similar installations?
Can I find reviews of your work on Google or HomeGuide?
Do you offer maintenance or repair services for the pellet furnaces you install?
How can I contact you if issues arise after installation?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.