Pellet Versus Coal Efficiency

• When used to operate any heating appliance, the overall U.S. efficiency rating for wood pellets is 80 percent, while coal is lightly lower at 75 percent.
  
  

Stove Efficiency Comparison

• In terms of fuel conversion efficiency, the U.S. Department of Energy states that wood pellet stoves average 85 to 90 percent, while coal stoves average 14.5 percent when used as a water-heated 50 gallon pot stove, 45 percent when hand-fired for central heating, and 60 percent when stoker-fired for central heating.
  
  

Fuel and Operation Costs

• The U.S. Department of Energy estimates that when BTUs, or British Thermal Units are calculated into the cost of fuel, wood pellets are more expensive than coal as a heating alternative. For example, it would take $15.15 to burn one million BTUs of heat, compared to only $9.06 using coal. However, in terms of U.S. fuel costs, wood pellets cost $245 per ton, while coal is only slightly higher at $250 per ton.