According to HPBA, sales of freestanding pellet stoves and pellet stove inserts in
2012* decreased by 12% to 48,277 units in the United States. This can be attributed
to a lack of new home construction in cold weather states.

To our north in Canada, where a housing boom exists, pellet stove sales increased
13% to 5,811 units.

Slightly more than a third of pellet stove owners state it is their primary heat source
while the remainder use their pellet stove or fireplace insert as a supplementary heat
source in conjunction with lowering the main thermostat.

Congress Reinstates Biomass Heater Tax Credit
On January 1, 2013, Congress passed a bill addressing parts of the Fiscal Cliff, and it
included a reinstatement of the $300 tax credit for biomass heaters. The provision
allows taxpayers to receive a tax credit for the full cost of the equipment and
installation up to $300 for stoves bought in 2013 and is retroactive, so that all eligible
stoves purchased in 2012 can also get the credit. Renewal for 2014 is still up in the air.

This means that every new EPA certified stove purchased is eligible for full $300 tax
credit because they all meet the 75% efficiency threshold and cost more than $300.
However, a taxpayer could not collect the full $300 if they have already received tax
credits under this provision in previous years and the total amount was over $500.

Wood Pellet Prices
The average cost for a ton of premium wood pellets for the 2013/14 heating season
has risen slightly to $279/ton (still a good deal) which is the equivalent of $2.46 per
gallon of heating oil and only 7% more expensive than heating with natural gas.

Bulk and Bagged Fuel Corn Prices
The price for bulk and bagged corn fuel has moderated quite bit from last season. The
price of bulk corn has decreased 20% to $265 a ton and bagged corn has followed suit
with a similar 20% decline to $300 per ton (50 bags @ 40 lbs). To see how the cost to
heat with corn compares to natural gas, visit our
Fuel Comparison Chart.

Pellet Stove - Pellet Stove Insert Prices
The prices for pellet stoves and inserts have barely budged this year with a good
selection of utility type stoves starting around $1,300. More decorative models with
brass or nickel trim, bay windows, and glass air wash systems are still bargain priced
at $2,500 - $3,200.

*Most recent year available.
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