Pellet boiler vs heat pump running costs compared: Formulas

Pellet boiler vs heat pump running cost: which heating system wins in 2026?

The pellet boiler vs heat pump running cost debate is now the biggest heating decision facing European homeowners, and the honest answer is that neither system wins everywhere. A pellet boiler burning bulk wood pellets at around 300 euros per tonne delivers heat at roughly 7.4 cents per kWh, while an air-to-water heat pump with a SCOP of 3.5 delivers heat at about 8.3 cents per kWh at the EU average electricity tariff. Your fuel prices, your insulation and your radiators decide the winner. We supply biomass fuel across Europe, so we will show you the numbers the same way we calculate them for our own bulk customers.

Order bulk ENplus A1 wood pellets for your pellet boiler before winter prices climb.

We supply ENplus A1 wood pellets in bulk quantities from one tonne to full truckloads across Europe, with stable pricing that protects your heating budget from seasonal spikes. Our pellets are certified, low-ash, and quality-tested, which keeps your boiler efficient and your servicing bill small. We also deliver wood briquettes, firewood and wood shavings for homes and businesses that heat with biomass. Bulk buyers get the lowest cost per kWh of heat, as our bulk vs bagged pellets analysis shows. Request a quote through our contact page and lock in your winter fuel early.

What is cheaper to run, a pellet boiler or a heat pump?

In 2026, EU averages show both deliver heat near 8 cents per kWh. Pellet boilers win under 320 euros per tonne; heat pumps win above SCOP 4.

The margin between the two systems is thin, which surprises many homeowners. According to the European Heat Pump Association, a heat pump stays competitive on running cost only when the electricity price stays close to the price of the fuel it replaces, because taxes and levies on power vary widely across Europe. A Polish or Czech household buying cheap bulk pellets often pays less per kWh of heat than a German household running a heat pump on a taxed tariff. A Swedish household with cheap green electricity sees the opposite result.

How do we calculate the running cost of a pellet boiler?

Pellets at 300 euros per tonne give heat at about 7.4-8 cents per kWh, so a 15,000 kWh home pays roughly 1,100 euros a year.

Here is the maths, step by step, so you can repeat it with your own pellet price. Quality ENplus A1 pellets hold about 4.8 kWh of energy per kilogram. A well-maintained pellet boiler converts about 85 per cent of that into usable heat, so one tonne yields roughly 4,080 kWh of heat. At 300 euros per tonne, that is 300 divided by 4,080, or 7.4 cents per kWh. A typical family home needing 15,000 kWh of heat per year then burns about 3.7 tonnes and spends near 1,100 euros on fuel.

The pellet price is the variable that moves the whole equation. German bulk prices averaged 343.14 euros per tonne in April 2025, according to DEPV, the German pellet association, while ProPellets Austria reported stable prices near 289 euros per tonne. Our 2026 pellet price and tips guide tracks these movements because every 50 euros per tonne shifts your annual bill by around 180 euros.

What is the formula for comparing running costs?

Both systems turn an input (pellets or electricity) into useful heat for your home. The running cost per kWh of heat is the input price divided by the efficiency of the conversion.

Pellet boiler

Cost per kWh of heat = (pellet price per kg/energy content in kWh per kg) / boiler efficiency

Pellets typically contain about 4.6 to 5.3 kWh per kg. If you buy by the tonne, divide the price by 1,000 first to get the price per kg. Boiler efficiency is a decimal, such as 0.90 for 90%. Use the figure from the manufacturer’s datasheet, and keep in mind that real efficiency is lower if the boiler cycles on and off a lot or is oversized.

Heat pump

Cost per kWh of heat = electricity price per kWh / seasonal COP

COP (coefficient of performance) is the ratio of heat delivered to electricity used. A COP of 3.4 means 3.4 kWh of heat for each 1 kWh of electricity. Use the seasonal figure (SCOP or SPF) that covers a whole heating season, not the single-point COP in a brochure, which is measured at favourable conditions.

Break-even point

The two systems cost the same when the break-even COP equals the electricity price/pellet cost per kWh of heat. If your heat pump achieves a higher seasonal COP than this number, it is cheaper to run. If not, the pellet boiler is cheaper.

How much electricity does a heat pump use, and why does the tariff decide everything?

A SCOP 3.5 heat pump needs 4,300 kWh of power for 15,000 kWh of heat, near 1,250 euros a year at the 0.29 euro EU tariff.

A heat pump moves heat rather than generating it, so one kWh of electricity becomes three to four kWh of warmth, measured as its seasonal coefficient of performance. Research published by KfW, drawing on Fraunhofer ISE field data, found a mean annual performance factor of 3.3 for air-source units, with ground-source units reaching 3.6 to 5.2. Divide your electricity price by your SCOP, and you get your heat cost per kWh. At the EU household average of about 0.29 euros per kWh reported by Eurostat for the second half of 2025, a SCOP 3.5 unit delivers heat at 8.3 cents per kWh. Push the SCOP to 4.0 with underfloor heating, and the figure falls to 7.3 cents, level with pellets.

Side-by-side comparison table

Cost factor	Pellet boiler	Air-to-water heat pump
Fuel or energy price in 2026	290 to 350 euros per tonne bulk, 400 to 450 per bag	0.25 to 0.35 euros per kWh of electricity
Energy needed for 15,000 kWh of heat	about 3.7 tonnes of pellets	about 4,300 kWh at SCOP 3.5
Cost per kWh of delivered heat	7.2 to 8.5 cents	7.3 to 9.7 cents
Typical annual fuel bill	1,100 to 1,300 euros	1,090 to 1,450 euros
Typical installed cost	18,000 to 25,000 euros	20,000 to 40,000 euros
Maintenance	yearly service, ash removal	yearly check, refrigerant control
Performance in freezing weather	full output at minus 25 degrees	Efficiency drops in deep cold.
Best suited to	older homes, radiator systems	insulated homes, underfloor heating

Which system suits an old house with radiators?

A pellet boiler suits old houses with radiators, holding full output in freezing weather while heat pump efficiency drops in cold air.

This is where the pellet boiler vs heat pump running cost question turns practical. Old radiators need water at 60 to 75 degrees, and every degree of extra flow temperature erodes heat pump efficiency. A pellet boiler shrugs at that demand; it burns the same whether the outdoor thermometer reads plus five or minus 25. Installation cost matters too. Polish installer data puts a pellet boiler at roughly 15,000 to 20,000 PLN against 45,000 to 60,000 PLN for a heat pump, about double the upfront spend before subsidies. The Heinrich Böll Foundation notes that national policy shapes this choice heavily, because subsidy schemes, carbon taxes and electricity levies differ across every European market.

Where can you buy bulk wood pellets at the best price in Europe?

Buy ENplus A1 pellets in bulk by the tonne or truck from certified EU suppliers, since bulk costs 20 to 30 per cent less than bags.

Running cost is not only about the machine; it is about your buying strategy. Bagged pellets in the Netherlands and Belgium sell at 400 to 450 euros per tonne, while bulk blown deliveries trade 20 to 30 per cent lower, which is why our bulk vs bagged cost analysis recommends silo or pallet-free delivery wherever storage allows. S&P Global recorded EU pellet import values rising to 253 euros per tonne in November 2025 on cold weather demand, so ordering before December protects your budget. Choose certified fuel, as explained in our guide to ENplus certification, and check our advice on choosing ENplus A1 pellets for your boiler before ordering.

“To make the running costs of the heat pump competitive, the cost of electricity should be at most twice the price of gas.” European Heat Pump Association, 2025 report update

What COP can you expect?

COP varies with the heat pump type, the flow temperature of your heating system, and the outdoor climate. Published sources give these reference points:

The International Energy Agency states that the COP of a typical household heat pump is around four.
The European Commission says modern heat pumps are 3 to 5 times more energy efficient than traditional gas boilers, and that savings depend on local energy prices and the home.
A four-year Fraunhofer ISE field study of 77 heat pump systems in older German homes measured average seasonal performance factors of 3.4 for air-source (range 2.6 to 4.9) and 4.3 for ground-source (range 3.6 to 5.4).

The field figures are the most useful for a running cost calculation, because they include real installations in existing buildings. The wide ranges also show that a poorly designed or badly set up system can perform much worse than the average.

Worked example with example prices

The prices below are example prices for illustration only. They are not Woodbury prices and are not a forecast. Replace them with your own current prices.

Input	Example value
Pellet price (example)	350 EUR per tonne (0.35 EUR per kg)
Pellet energy content	4.8 kWh per kg
Pellet boiler efficiency (example)	90% (0.90)
Electricity price (example)	0.25 EUR per kWh
Heat demand of the house (example)	15,000 kWh of heat per year

Step 1: pellet boiler

Pellet cost per kWh of fuel: 0.35 / 4.8 = 0.073 EUR. Divide by boiler efficiency: 0.073 / 0.90 = 0.081 EUR per kWh of heat. For 15,000 kWh of heat, you need about 3,470 kg of pellets, roughly 3.5 tonnes, which costs about 1,215 EUR per year.

Step 2: heat pump at three seasonal COP values

We use the field range from the Fraunhofer study for air-source and ground-source systems.

Seasonal COP	Cost per kWh of heat	Annual cost (15,000 kWh)	Electricity used
2.6 (low end, air-source)	0.096 EUR	about 1,442 EUR	about 5,770 kWh
3.4 (average, air-source)	0.074 EUR	about 1,103 EUR	about 4,410 kWh
4.3 (average, ground-source)	0.058 EUR	about 872 EUR	about 3,490 kWh

Step 3: compare

With these example prices, the break-even COP is 0.25 / 0.081 = about 3.1. An air-source heat pump with a seasonal COP of 3.4 costs slightly less to run than the pellet boiler, a ground-source pump costs clearly less, and a poorly performing system at 2.6 costs more.

If electricity costs 0.15 EUR per kWh, for example on a dedicated heat pump tariff, the break-even COP falls to about 1.9, and the heat pump wins easily. If pellets cost 300 EUR per tonne instead of 350, the pellet cost drops to about 0.069 EUR per kWh of heat, and the break-even COP rises to about 3.6.

Which factors change the result?

The running cost formula gives you one half of the picture. These factors change the inputs or the total cost:

Electricity-to-pellet price ratio. This is the main driver. Prices differ widely between countries, suppliers, and tariffs, and they change over time.
Insulation and heat demand. A well-insulated house needs less heat, so both running costs fall, and heat pumps work best at low flow temperatures.
Emitters. Underfloor heating and large radiators let a heat pump run at a lower flow temperature and a higher COP. Old small radiators force higher temperatures and lower COP.
Climate. Cold winters lower the seasonal COP of air-source units.
Hot water. Heating domestic hot water needs higher temperatures, which reduces the heat pump COP for that share of the load.
Pellet quality and storage. Poor fuel lowers boiler efficiency and increases cleaning. See our wood pellet moisture guide.
Maintenance. Pellet boilers need regular ash removal and an annual service. Heat pumps need less routine work but also need servicing.

What about installation costs and subsidies?

Running cost is only part of the total cost of ownership. Installation costs are typically higher for heat pumps than for conventional boilers, according to the European Commission, and the gap depends on the country, the system type and whether the house needs new radiators or pipework. A pellet boiler also needs a pellet store or silo, a flue and a delivery route, which can add to the price.

Subsidies, grants, low-interest loans and tax rules differ by country and change often. Some countries offer large support for heat pumps, others support biomass boilers, and some limit support for one or the other. Check your national energy agency or your local authority for current rules before you compare quotes. To compare total cost, divide the extra installation cost, after any subsidy, by the yearly running cost saving to estimate the payback period.

When does a pellet boiler make more sense?

A pellet boiler is often the practical choice when the building is old, uninsulated or fitted with high-temperature radiators, when electricity is expensive compared with pellets, or when the house has no suitable outdoor space or electrical connection for a heat pump. It can supply high flow temperatures without extensive renovation.

A heat pump tends to win when the house is reasonably insulated, the radiators are large, or the floor is heated, electricity prices are moderate, and a seasonal COP of 3.5 or more is realistic. Ask installers for a heat loss calculation and an expected seasonal COP for your house, not a general brochure figure.

Our guides on wood pellets for heating and bulk versus bagged pellets explain how to estimate your fuel cost and delivery options. If you run a boiler or stove, see our EN plus A1 wood pellets and biomass wood pellets.

Pellet Boiler vs Heat Pump Running Cost

Is a heat pump always cheaper to run than a pellet boiler?

No. It depends on the electricity-to-pellet price ratio and the seasonal COP your system achieves. With example prices of 0.25 EUR per kWh and 350 EUR per tonne, the break-even COP is about 3.1.

Should I use COP or SCOP in the formula?

Use the seasonal value (SCOP or SPF). A single-point COP is measured at one favourable condition and overstates the average over a winter.

What pellet boiler efficiency should I use?

Use the figure in the boiler’s datasheet, then be cautious. Real efficiency can be lower in practice if the boiler is oversized or cycles often. The example uses 90% only for illustration.

Do I need to include maintenance in running costs?

For a full comparison, yes. Include chimney sweeping, boiler servicing, ash disposal, and any heat pump service contract, since these costs vary by country.

Can I use the same method for firewood or gas?

Yes. Divide the fuel price per kWh by the appliance efficiency. Firewood contains about 4.2 kWh per kg when dry, but check the moisture content, since wet wood gives much less.

Is a heat pump cheaper to run than a pellet boiler?

Sometimes. At the EU average electricity price of about 0.29 euros per kWh, a heat pump with SCOP 3.5 produces heat at 8.3 cents per kWh, while a pellet boboiler at00 euros per tono pellets produces heat at 7.4 cents. A heat pump wins when pellets cost more than 340 euros per ton, or when its SCOP exceeds 4.

How much do wood pellets cost per ton in Europe in 2026?

Bulk pellets ranged from roughly 289 euros per ton in Austria to 343 euros per ton in Germany during 2025, with EU import values at 253 euros per ton in November 2025. Bagged pellets in the Netherlands and Belgium cost 400 to 450 euros per ton.

How many tons of pellets does a boiler use per winter?

A family home needing 15,000 kWh of heat burns about 3.7 tons per year at 85 percent boiler efficiency. A larger or poorly insulated house can use 5 to 6 tons, so budget accordingly using our pellet consumption guide.

What SCOP should a good heat pump have?

Aim for SCOP 3.5 or higher for air-source units, which matches the Fraunhofer ISE field average of 3.3 and rewards low flow temperatures. Ground-source units reach 3.6 to 5.2, closing the running cost gap with pellets.

Are pellet boilers still subsidized in Europe?

Yes, in several countries. Germany, France, Poland and others still fund biomass boilers under national renovation schemes, though grants are tied to efficiency and emission standards. Check your national programme before you commit.

Which is better for an old house, a pellet boiler or a heat pump?

A pellet boiler usually is. It delivers high-temperature water for existing radiators without efficiency loss, costs roughly half as much to install, and keeps full output in deep frost, where air-source heat pump performance declines.

References

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Pellet Boiler vs Heat Pump Running Cost: How to Calculate It