The Economics of Wood Pellet
|Heat output equivelents||1 litre||2.1kg|
|Unit cost (incl. VAT)||83c/litre||18.16c/kg|
|Cost (incl. VAT)||€830/1,000 litres||€381.36/2.1 tonnes|
Further savings are realised due the comparative efficiency difference between the wood pellet boiler and burner and that of an old oil system. The net efficiency of an older oil system is far less than that of a properly installed wood pellet boiler from reputable and experienced manufacturer. These differences can be as glaring as 35% and even the new condensing oil systems are not performing to the efficiency they claim. If the efficiency difference is 10%, the total cost savings per ton of oil will be €405. This rises to €584 with older boilers that are 35% less efficient.
When making a decision to put in a heating system in a new build, the payback period is based on the total cost difference between installing an oil system and a wood pellet one and the number of years it will take to pay off the difference. The annual savings gained from lower operating costs will depend on how much will be burned. If the equivalent of 2 1/2 tons (fills) of oil (2,500ltrs) is used, this amounts to a savings of €834.00 per year or if an older system, €1,460.00 per year.
On new builds, the capital expenses to purchase a complete wood pellet boiler system (including silo system, flue, etc.) and have it installed/commissioned, come to €7,500 more than an efficient oil system. However, taking into account the grant of €4,200, available from SEI, the payback will then be approximately 4 years. Oil prices are not going down.
From our experience and our customers' testament the EcoTec burner in our Pellet Boiler is more efficient and burns less fuel than many of our competitors in the Irish Market. Therefore we feel that our system is good value for money and the experience of our installers and back up service provided is second to none.
Thank you for your interest and we hope to here from you soon.