Energy costs: what is the most economical heating?

HASE, a German manufacturer of high-quality wood stoves for over 40 years, reveals a few points in an infographic to help you see more clearly and make a lasting choice.

Energy prices impacted by the international context

If the war in Ukraine had a very significant impact on the price of energy, in France as in many other regions of the world, fossil fuels were the most impacted by this dramatic event with revolutionized international trade.

For their part, logs and wood pellets, local energies, and therefore less sensitive to international crises, were more spared by the situation. Their prices depend largely on their region of origin, the labor required to satisfy demand, even if electricity and fuel are used in their production and delivery.

First observation: Certainly, prices for wood heating are increasing, but to a lesser extent than other energies. This increase is mainly based on a slow and more regular evolution than other energy sources.

The price of pellets saw a sharp increase in the winter of 2022-2023 following demand exceeding supply. Since then, prices have decreased and returned to a more consistent level, corresponding to a slight regular increase.

Fuel oil, like all fossil fuels, experienced an increase following the Ukrainian conflict, but in the same way as pellets its price level returned to a level corresponding to a more “normal” increase.

The regulated gas price allowed consumers to avoid a very sharp increase. It experienced a slight increase in stages until July 2023, when the regulated rate was abandoned. Its future remains uncertain.

Electricity continues its structural price increase, in the sense that its price level is already promised one or even several increases in 2024.

What about the efficiency of heating equipment?

If the cost of the raw material is regularly the criterion put forward, it is not the only element to take into consideration: the equipment also has a significant importance in terms of energy efficiency.

Efficiency, to put it simply, is the ratio between the energy generated by the device and the energy it consumes.

If for wood heating it is not possible to achieve 100% efficiency, performance continues to increase.

Wood stove models with the 7-star Flamme Verte label exceed 75% efficiency, and those with pellets exceed the 87% mark. Note that the figures communicated for gas and fuel oil are communicated with an efficiency estimate of 100% but it can vary between 80 and 110% for a gas boiler (conventional or condensing boiler).

All HASE stoves meet such requirements, and exceed them with its wood stoves all exceeding 80% efficiency.

Therefore, the difference in efficiency between wood and other solutions is increasingly reduced, choosing wood heating allows you to save money compared to other available solutions.

What is the most economical heater?

June 2023: Wood heating still displays competitive prices, as it has for many years, and above all it is the energy source whose price is increasing the slowest, and in the least irregular way, even if seasonal variations exist.

For example, wood logs are available for less than 9 euro cents per kilowatt hour (kWh). Wood pellets are generally offered at around 11 euro cents per kWh.

Although disparities may be present between the different regions, the prices of wood logs or pellets remain much lower than the price of electricity which now exceeds 20 euro cents per kWh.

As for the price of fuel oil, it now exceeds 10 euro cents per kWh, just like natural gas, and is also showing a permanent increase.

It should also be considered that although the increases in certain energies may seem moderate, they are the result of measures put in place by the government, such as the tariff shield, to contain energy inflation and reduce its impact on individuals: it helps keep prices artificially low.

However, these measures are temporary, the regulated gas price was stopped on July 1, 2023, and the regulated electricity prices have already been lifted for some professionals in 2021. They still concern individuals, but with already a increase of 10% in August 2023 and an uncertain future.

Assistance offered to reduce the initial outlay

As for the price of the equipment, it corresponds to an initial investment.

The notion of profitability is more in the long term, taking into account the foreseeable evolution of energy sources. But... it is difficult to make medium and long term forecasts. However, the future of fossil fuels is now numbered, and the already high electricity prices seem only to rise, the only question is: by how much?

Furthermore, regarding the price of the equipment and installation, this can be reduced thanks to the aid granted in particular for wood heating. Bonuses are available using the MaPrimeRénov' system, and it is possible under certain conditions to benefit from a VAT rate reduced to 5,5%.

Added to this are energy bonuses as well as access to the zero-interest eco-loan to finance the acquisition of equipment linked to other energy renovation work.

Price details measured by energy/sources:

• Wood: logs on pallet 33-40cm H1 quality, per stere € including tax 20% humidity, not delivered, source CEEB, PCI 1500 kWh / stere.
• Pellets: price per tonne in bags including tax, not delivered, source CEEB
• Fuel: price including tax FOD_C1, not delivered, official statistics
• Electricity: regulated blue rate, 6 kV, excluding subscription
• Gas: regulated rate, rate B1, zone 1, excluding subscription

Illustrative image of the article via Depositphotos.com.