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Wood-fuelled heating systems, also called biomass systems, burn wood pellets, chips or logs to provide warmth in a single room or to power central heating and hot water boilers.
A stove burns logs or pellets to heat a single room - and may be fitted with a back boiler to provide water heating as well. A boiler burns logs, pellets or chips, and is connected to a central heating and hot water system. A wood-fuelled biomass boiler could save you up to £700 a year compared to an old electric heating system.

The benefits of biomass heating

1. Affordable heating fuel

Although the price of wood fuel varies considerably, it is often cheaper than other heating options.

2. Financial support

Wood fuel boiler systems could benefit from the Renewable Heat Incentive (RHI)

3. A low-carbon option

The carbon dioxide emitted when wood is burned is the same amount that was absorbed over the months and years that the plant was growing. The process is sustainable as long as new plants continue to grow in place of those used for fuel. There are some carbon emissions caused by the cultivation, manufacture and transportation of the fuel, but as long as the fuel is sourced locally, these are much lower than the emissions from fossil fuels.  

If you live in Scotland, view case studies and examples where homeowners have installed a wood-fuelled heating system.

Costs, savings and financial support

How much you can save



For boilers, an automatically fed pellet boiler for an average home costs between £11,000 and £17,000, including installation, flue, fuel store and VAT at 5 %. Manually fed log boiler systems can be slightly cheaper.

Pellet costs depend mainly on the size and method of delivery. If you have room for a large fuel store that will accept several tonnes of pellets at a time, delivered in bulk by tanker, you can keep the cost down to around £255 per tonne in most parts of the UK.

Logs can be cheaper than pellets, but costs depend on the wood suppliers in your local area, as they cost a lot to transport. If you have room to store more than a year’s worth of logs you can save money by buying unseasoned logs and letting them season for a year.


Savings in carbon dioxide emissions are very significant - up to 14.3 tonnes a year - when a wood-fuelled boiler replaces a solid (coal) fired system. Financial savings are more variable - if you replace an older LPG heating system with a wood-burning system you might save up to £1,205 a year, but if you are replacing an old electric heating system you could save as much as £960 per year. However, if you currently have a newer (more efficient) system, such as a modern condensing gas or oil boiler, a biomass boiler is likely to cost you more to run than your current system. This table shows how much you could save by installing pellet central heating in a typical four-bedroom detached house with basic insulation.

England, Scotland and Wales 

Existing system

Fuel bill saving


 Renewable Heat Incentive (RHI) payment (£/year)

1 January 2018 to 31 March 2018

Carbon dioxide savings

(Tonnes CO2/year)

Gas old (G-rated) boiler


Gas new (A-rated) boiler


Fuel bill increase

£115 to £120

Fuel bill increase

£375 to £405

£1,040 to £1,390

4.8 to 5.1 Tonnes CO2


2.5 to 2.6 Tonnes CO2

Electric (old storage heaters)

Electric (new storage heaters)

£640 to £700


£240 to £255

3.8 to 4.1 Tonnes CO2


2.8 to 2.9 Tonnes CO2

Oil older (worst rated) boiler


Oil new (best rated) boiler

£225 to £240


Fuel bill increase
-£360 to -£380

8.4 to 11.1 Tonnes CO2


5 to 6.5 Tonnes CO2

LPG older (G-rated) boiler


LPG new (A-rated) boiler

£920 to £980



5.7 to 6.1 Tonnes CO2


3.0 to 3.2 Tonnes CO2


£40 to £50 10.1 to 10.8 Tonnes CO2

Figures are based on fuel prices as of February 2019. 

Northern Ireland

Existing system

Fuel bill saving (£/year)

Carbon dioxide savings (Tonnes CO2/year)

Typical non-condensing Gas boiler

-£105 -£110

4.9 Tonnes COto 5.2 Tonnes CO2

Old Electric heating system

£740 to £810

4.8 Tonnes COto 5.1 Tonnes CO2

Typical non-condensing Oil boiler

-£100 to £110

4.2 Tonnes COto 4.4 Tonnes CO2

Typical non-condensing LPG boiler

£840 to £890

3.7 Tonnes COto 3.9 Tonnes CO2


£185 to £205

8.4 Tonnes COto 9 Tonnes CO2

Figures are based on  a typical four-bedroom detached and on fuel prices as of February 2019. Negative fuel savings indicate a fuel bill increase.

Find out more about how we made these calculations. Note: The Renewable Heat Incentive is no longer available in Northern Ireland.

Financial support for biomass

You may be able to receive payments for the heat you produce from a wood boiler or a pellet stove with back boiler through the UK government’s Renewable Heat Incentive.


Domestic RHI is no longer available in Northern Ireland - details of the previous scheme can be viewed at NI Direct.

  • All biomass fuel used by RHI participants must be sourced from a supplier on the Biomass Suppliers List at the time the fuel was purchased. This is a list of suppliers of sustainable biomass fuel. 
  • It is advisable to check whether your fuel supplier is registered on the Biomass Suppliers list before entering into any long term supply contract. 
  • Not all fuels supplied by suppliers on the BSL are sustainable as a supplier may supply more than one type of fuel. You should  check with your supplier, or prospective supplier, which of their fuels are registered

Find out more about support available.


Biomass boilers and stoves should be kept clean and swept regularly to remove ash. Ash quantities are generally very low (less than one per cent of fuel volume), but you will still need to empty the ash bin of a wood burning stove or boiler. This is likely to be weekly and never more than once a day. A log fire requires ash removal before every use.

Some appliances, particularly boilers, have self-cleaning systems which will collect ash from the combustion grate and the heat exchanger tubes. If there is no automatic ash cleaning mechanism in place the boiler will need to be shut down periodically so that this can be done by hand. If the ash is not cleaned out regularly, it will build up and adversely affect combustion conditions, which can lead to boiler failure and shut down. Some boilers have a mechanism for compressing the ash which reduces the number of times the ash bin needs to be emptied.

With automatic ash removal and cleaning of the heat exchanger the only other maintenance requirement will be occasional ash removal and an annual maintenance check. If you have a wood burning stove or boiler the chimney and flue pipe must be swept regularly to remove all soot deposits and prevent blockage. HETAS recommend that this “should be done at least twice a year, preferably before the heating season to check that the flue has not been blocked by bird's nests for example and also at the end of the heating season to prevent soot deposits from resting in the chimney during the dormant period”.

Further information on chimney safety can also be found in the National Association of Chimney Sweep’s leaflet Heat your Home Safely. Burning wet wood increases the amount of soot in a chimney and with it the chance of a chimney fire. Logs should always be seasoned (air-dried) for at least a year before being burned.

Choosing a wood-fuelled heating system

Boiler or stove? 

Boilers can be used in place of a standard gas or oil boiler to heat radiators for a whole house, and to heat the hot water. Stoves are used to heat a single room, usually in conjunction with other heating systems, but may also have a back boiler to provide hot water. Stoves are not eligible under the domestic RHI unless it is a pellet stove with a back boiler.

Chips, pellets or logs?

Chips are used to heat larger buildings or groups of houses.

Pellets are much easier to use and much more controllable than logs. Pellet boilers can run automatically in much the same way that gas or oil boilers operate. Most pellet and chip burners use automatic fuel feeders which refill them at regular intervals.

Log-burning stoves and boilers have to be filled with wood by hand and require considerably more work. You will need a lot of logs to heat a whole house, but they can be cheaper than pellets if you have a good local supply.

Do you have a local fuel supplier? 

Some companies now offer deliveries of pellets anywhere in mainland Britain and Northern Ireland while the supply of logs is more variable.

Do you have space?

Wood boilers are larger than gas or oil equivalents and you will need space to store the fuel. This area will need to be somewhere that's handy for deliveries as well as appropriate for feeding the boiler.

Do you have somewhere to put the flue?

You will need a flue which meets the regulations for wood-burning appliances. This could be a new insulated stainless steel flue pipe or an existing chimney, though chimneys normally need lining to make them safe and legal.

Do you need permission?

You may not need planning permission, but you should always check. All new wood heating systems have to comply with building regulations, and the best way to ensure this is to use an installer who is a member of a competent person scheme

For more information on planning permission for biomass, download our guide.