There are three main types of wood fuelled heating: wood chip boilers, log boilers and wood pellet stoves.

Flexible and efficient, wood boilers are suitable for both new and existing buildings and can be integrated with existing heat distribution systems, such as radiators or underfloor heating. Because they operate in the same way as fossil fuel boilers, wood fuelled systems can directly replace your oil, coal or gas boiler.

The storage area needed for fuel is a prime consideration when choosing a wood fuelled boiler. For pellets the storage space required is approximately 3 times the storage space of oil. Pellets are normally delivered in bulk and are ‘blown in’ to a storage silo. Bulk pellet suppliers will require site access for their delivery lorries to within 60 feet (20 metres) of the pellet storage unit to ensure the quality of the pellets.

A wood fuelled boiler typically costs between £4000 and £8000. The price depends upon factors such as the kW output of the boiler, the brand of boiler and the fuel storeage solution for the wood.

Purchasing in bulk is the most economic way to order pellets. Currently Balcas charge £114 (excluding 5% VAT) per tonne. Therefore a 3 tonne delivery costs £342 (excluding VAT). Compared with oil, it is estimated that 2.2 tonnes of pellets provides the same heat output as 1,000 litres of oil - currently over £600. Therefore compared with wood pellets it is possible to reduce your fuel bill by more than 50%.

The size/output of the boiler is also key to ensure maximum efficiency. A buffer tank (heat store) and sufficient building insulation are also recommended.

Many towns and cities are classed as smokeless zones. Ask your local councils for advice.

Wood pellet stoves operate similarly to pellet boilers, however bulk fuel storage is not required - several local fuel suppliers provide bagged pellets. Wood stoves combust a small quantity of pellets and use a fan to circulate the heat around the room. Wood pellet stoves are generally used to heat a single room although stoves which heat water or a number of radiators are also available.