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Pellet heating: The smart heating technology with a future

The heat supply for buildings and households must become more climate-friendly. Below you will find some important information about the advantages, structure, components, and costs of a heating system with wood pellets. Pellet heating systems are the perfect combination of environmental friendliness, efficiency, and cost savings. Especially for existing properties, such as single-family and two-family homes, they offer an excellent alternative to fossil fuel heating systems, but also to heat pumps and the like. 

The big advantage: a pellet boiler can usually be installed on site of an old oil boiler. A costly full-scale energy renovation of the house or the replacement of existing radiators is not necessary with a pellet boiler. The efficient heating technology reliably ensures high flow temperatures and larger heat requirements. Even at low outside temperatures in the winter, the pellet boiler works energy-efficiently - without becoming a costly electric heating system.

Construction and components of a pellet heating system

How does a pellet heating system work?

Modern pellet central heating systems operate reliably, cleanly, and almost fully automatically. Thanks to our high-quality wood pellets from regional, sustainable sources, they provide environmentally friendly and affordable heat. In the "pellet heating system," the process proceeds as follows:

Pellet storage:

The pellets are stored in a special storage room (5) or storage tank (4). This storage room can be located directly next to the heating system or externally (3), from where the pellets are automatically fed. Different storage systems are available depending on the needs. For a straightforward filling with the pellet vehicle, the pellet storage should not be more than 30 meters from the road or drivable surface.

Automatic feeding:

A screw conveyor or suction conveyor (mole conveyor) transports the pellets from the storage area into the combustion chamber of the heating system. This process is automated and occurs as needed by the heating system. The ideal transportation system used depends on the warehouse system and the spatial conditions.

Ignition and combustion:

The pellets enter the combustion chamber of the boiler (6), where they are ignited by an electric ignition (similar to a glow plug). The combustion takes place in a specially designed burner in a controlled and efficient manner. A backfire protection prevents direct contact between the fire and the fuel supply. Modern combustion control makes pellet heating systems stand out with a very high efficiency of over 90 percent and low emissions.

Heat exchangers and storage:

The heat generated by burning the pellets is transferred to the water in the heating system via a heat exchanger. The heat exchangers can be cleaned regularly automatically or manually. Angeschlossene Pufferspeicher (8) verringern die Anzahl der Brennerstarts und sorgen dafür, dass die Heizung sehr gleichmäßig und effizient arbeitet. The hot water is then directed from the tank to the radiators or underfloor heating.

Ash discharge:

RECORD Wood pellets burn very clean with only small amounts of ash residue. The cleaning is fully automatic. The residual ash is collected in a collecting container (12). This must be manually emptied about twice a year, depending on the heating type and usage.

Exhaust cleaning and removal:

Modern pellet heating systems have integrated exhaust gas cleaning systems to keep emissions as low as possible. The high quality of REKORD pellets ensures optimal operation of the system. A key requirement for a pellet heating system is a suitable exhaust system (11 chimney) to vent the resulting exhaust gases. Whether an existing chimney can be used with a pellet heater or simply retrofitted, should be discussed with a chimney sweep at an early stage.

Regulation and control:

The pellet heating system is controlled by a management system that ensures the pellets are burned efficiently and in accordance with demand. This system monitors the temperature and adjusts the pellet supply and heating mode accordingly. Depending on the model and provider, control systems are available that can automatically access online weather and temperature data or be controlled remotely from a smartphone while on the go.

Overview of the costs of a pellet heating system

Pellet stoves for single-family homes currently cost between €15,000 and €32,000, depending on the power, equipment, and quality of the components used. The exact composition of the acquisition costs of a pellet heating system and the operating costs depend heavily on your specific requirements and individual preferences. The following information is only intended as a rough guide.

Acquisition costs of a pellet heating system

A pellet heating system consists of various components that must be considered in total when determining the cost of the heating system. The largest cost factor is the pellet boiler, followed by installation costs and expenses for a pellet storage facility.

System ComponentsApproximate Costs
Pellet boiler€5,000 – €12,000
Pellet storage/tank€1,000 – €6,000
Conveyor system€1,500 – €2,500
Buffer tank€2,000 – €4,000
Assembly & installationapprox. €4,000

Costs for the pellet boiler

The pellet boiler is the core of every system, as this is where the actual heat is generated. The cost depends on the minimum heat output, the degree of automation, and the emission values. Affordable entry-level models with reduced features are available for under €5,000. However, it is often worth investing in a higher-quality, fully automatic boiler. The price for such models currently ranges from approximately €8,000 to €12,000.

Costs for the pellet storage

Those who want to significantly reduce their acquisition costs for a pellet heating system can do so by using a manually filled pellet boiler and forgoing a pellet storage and the necessary feeding technology. However, this requires a record-breaking amount of sacked goods on a pallet and a bit more effort and fitness. However, in most cases, the pellet storage is a fixed part of the system: The conversion of an existing room with sloping floors costs around €1,000. Sacksilos, pellet tanks, or earth bunkers cost between €2,000 and €6,000. 

Storage space€1,000
Bag silo€2,000 – €3,000
Pellet tank€3,000 – €4,000
Earth bunker€4,000 – €6,000

Costs for the support system

The conveyor system, which automatically transports the pellets from the storage to the boiler, is also a relevant cost factor. The simple rule applies: the longer the route, the more expensive it becomes. In a typical single-family home, the costs amount to approximately €1,000 to €2,500.

Costs for the buffer storage

A buffer storage tank can increase the efficiency and longevity of the heating system by storing heat and allowing the pellet boiler to operate at full capacity for longer. A buffer tank is also absolutely necessary for combination with a solar thermal system. The cost of a buffer storage tank ranges from €2,000 to €4,000, depending on the design.

Assembly costs

In addition to the price of the system components, there are also expenses for installation and assembly. In addition to the system components, there are also costs for the installation and assembly of the system.Installation of the pellet heating system. Approximately €4,000 should be budgeted for this.

What are the operating costs of a pellet heating system?

The costs incurred during the operation of a pellet heating system are relatively low and consist of the cost of fuel, chimney sweep, electricity consumption, and service and maintenance costs. The largest part is fuel costs. When ordering pellets, one usually benefits from lower prices during the off-season, such as in the spring, and should take advantage of the full storage capacity to ensure a sufficient supply. An example: With an annual consumption of around 5,000 kg of wood pellets (equivalent to 2,500 liters of heating oil), the annual costs amount to around 1,450 euros. (14 kW pellet heating, 290 euros/ton of wood pellets).

Ongoing costs of a pellet heating system
component average costs
Pellet consumption (average 5 t/year) * €1,450
Electricity consumption (average 250 kWh/year) ** €90 - €150
Maintenance costs €180 - €300
Chimney sweeping costs €100 - €200

* Assuming a price of €290/ton, the long-term average price over the last 10 years according to the German Pellet Institute is €275/ton
** Price range: 0.30 - 0.42 cents/kWh incl. VAT

So get your pellet heating system!

1. Preparation

  • Determine the heat requirement: The average heating oil or natural gas consumption over the past few years provides a rough orientation. The same applies to the building energy passport.
  • To provide an overview of heating technology and pellet boiler providers. Many manufacturers offer helpful tools for the implementation process on their websites. Here is an overview of the market for pellet system manufacturers.
  • Check the space for the boiler and pellet storage. Is there a power connection for the boiler and the conveyor system? Is there a chimney and can it be used for a pellet heating system? 

 

2. Planning and Selection

  • Request quotes and conduct a consultation: An overview of heating installers and pellet specialists can be found under the menu item "Find a heating contractor". Most heating device manufacturers will also provide you with an experienced SHK operation for pellets.
  • Compare offers and select a pellet system (boiler and storage system, solar or heat pump combination).
  • Clarify financing and apply for funding. Your heating contractor can usually help you fill out the funding applications.

 

3. Installation and commissioning

  • Have the pellet system installed by a professional.
  • Order and have pellets delivered.
  • Commissioning and training by a specialist company
  • Organize a chimney sweep inspection.

Frequently Asked Questions

12.12.2025

In the course of the heat transition, heat pumps and pellet heating systems are the main focus when it comes to supplying heat to buildings. Both systems have unique advantages, but also disadvantages and differ in key aspects: Pellet heating uses wood pellets from the renewable raw material wood. The heat pump uses environmental heat (air, earth, groundwater) and electricity. Which system is the most suitable in each case depends on a number of factors, in particular the specific heat requirement and the building structure: the heat pump is particularly useful in new builds and very well insulated existing buildings. When installing the heat pump, attention must be paid to noise emissions frcom neighbors. In principle, the heat pump is highly dependent on the electricity market and future grid stability. Pellet heating is particularly suitable for old buildings and less well insulated existing buildings. Compared to heat pumps, pellet heating requires more space.

12.12.2025

The structure of a pellet boiler differs depending on the manufacturer, model, output and components used. In addition to the boiler shell, the central elements are the combustion chamber with feed screw and burn-back protection, ignition element with combustion grate, control electronics, lambda probe, flue gas temperature system and combustion air nozzles, heat exchanger with cleaning system, flue gas fans and flue pipe as well as the ash discharge system and ash container.

12.12.2025

A pellet boiler functions as a central heating system: The heat generated in the combustion chamber is transferred to the hot water circuit or buffer storage via heat exchangers, supplying the water-based radiators in the building. A pellet stove typically functions like a fireplace stove as a single-room heater and is often placed in the living room. The heat generated in the fire chamber of the stove during combustion is emitted as infrared radiation through the viewing window and as convection heat directly into the room through the stove body. Pellet stoves with a water jacket form a hybrid, which transfers some of the heat generated to the heating circuit via the buffer storage.

12.12.2025

Basically, combining a pellet system with a solar thermal system or a small hot water heat pump is possible and also required for comprehensive funding. Against the higher investment costs, the advantage is that in the warm months, solar thermal energy or heat pumps can usually cover the hot water needs, e.g. for showering and washing, and the pellet boiler plays its strengths in the cold season. Those who do not need a subsidy or only use the basic subsidy of 30 percent do not have to combine. In addition to the investment costs, a common reason against a solar thermal system is that the roof area is used for photovoltaics, i.e., electricity production.

12.12.2025

A pellet heating system operates largely automatically. Only the ash container requires regular emptying. In principle, the cleaning and maintenance recommendations of the boiler manufacturer should be followed. Once a year, a professional should service the combustion chamber, heat exchanger, sensors, conveyor system, and exhaust gas paths to ensure efficient and safe operation of the pellet system. The chimney sweep also checks the exhaust gas values and safety. 

12.12.2025

No, we are a fuel producer and supplier. To obtain a quote for a pellet heating system, you should contact a relevant heating manufacturer or a pellet specialist in the heating and installation trade (SHK business) in your region.