Understanding Wood Pellet Prices
The year 2005 saw how badly the world was shaken by the tremendous surge in prices of both oil and gas, as it touched sky high prices. In a way, this development or unexpected surge was one that directly benefited the wood pellet industry because wood pellet prices were mostly untouched by inflation or market trends. Yet the industry of wood pellet manufacturers were taken by complete surprise to witness the incredible demand so this obviously meant that they were unprepared. Yet the demand for the wood pellets and its whole range became a world’s wondrous occurrence because the backorder list for wood pellets for the year 2005 actually grew longer and longer, much to the disbelief of the manufacturers who had not witnessed a trend like this!
With so much of volatility and overdependence on fossil fuels that almost empty the wallet, the public became conscious of the urgent need to ensure that better and more effective alternative sources of fuel, particularly wood pellet, would be ideal simply because wood pellets command a great value in today’s market.
For example, wood pellets are sold in U.S. normally by the bag that weighs about 40 lb or by a ton. The current selling price of wood pellets spans somewhere starting with $120-$200 for a single ton. That means for a bag, the cost would span $2.40-$4.00 which is extremely reasonable and not even in pace with levels of inflation. At certain rare occasions, the wood pellet prices vary in the context of availability, season and region.
When we talk about people like you and me, who may be average users of the wood pellet stove, let us determine how much we would use. To begin with, our average consumption would be a 40 lb bag for every 24 hours to 1,500 sq ft that is heated. The general understanding about pellet consumption is that it tends to vary based on the average home efficiency as well as the stove settings.
Now that we understood about wood pellet prices, it becomes pertinent to point out another rising trend, namely increase in popularity of kernel corn fuel during the last two decades. Although quite less in terms of sales numbers, there is talk that corn fuel has gained considerable momentum because it seems cheaper than wood pellet. The growing popularity has let a lot of manufacturers to modify their furnaces so that corn and wood pellets can be burned.
This year witnessed a huge wave of industry-wide designs where the wood pellet innovations won great strides particularly for wood pellet stoves that spelt grid independence to the delight of its customers.
Such tremendous quality of excellence in the level of product roll-out has not hit the industry in so many years. Manufacturers of wood pellet stoves are delighted with new models coming out and customers who are experimenting and responding.
The much talked about model for the year seemed to be Dells DC 2000 although the price tag reading $2,495 is definitely expensive. However, when you consider its overall efficiency at above 80% , it is worth it.
With this discussion on wood pellet prices, be ready to invest and experiment!