The cheapest and most environmentally friendly source of energy remains wood heating.

For Olivier SCHNELL, General Manager of HASE France: "For several years, the heating bill has become one of the major concerns of many French households. The consequence of a difficult economic context, linked to rapid variations in the prices of energy sources. Just like in our last study, we wanted to answer crucial questions such as: What are the changes in just one year? What will be the possible changes in the short and medium term for the different energies used for domestic heating? What are the least polluting and most economical energies?"

Good news: the decline in the influence of the international context on energy costs

2022 was a year of major crisis in global energy trade, with tensions over fossil fuels linked to the start of the Ukrainian crisis, but also the year of a significant unavailability of French nuclear reactors. Energy costs had exploded, but had been contained as best they could for French households with the help of state-subsidized tariff shields.

Since then, the impact of the Ukrainian crisis on energy costs has largely been absorbed, and the availability of French power plants has been restored, which has led in particular to the abolition of the regulated gas tariff, replaced by a benchmark price tariff (an average index of observed costs) from the Energy Regulatory Commission (CRE). On the electricity side, the CRE publishes regulated electricity sales tariffs (“blue tariff”), the consumer can opt for offers based on these tariffs, or on market price tariffs (more variable).

On the wood side, the log that is produced locally is still less sensitive to international events. Its price remains the lowest and most stable, and even in very slight decline after an increase in demand in 2022. For wood pellets, the sector had been overtaken by the increase in demand in 2022 and 2023 with sharp increases in the price of pellets, and certain supply difficulties, now resolved. Result: the price of wood pellets is once again much lower than fossil fuels.

Wood logs and wood pellets are local and sustainable energies, unlike fossil fuels, which are largely imported. Their prices depend largely on their region of origin, the labor required to meet demand, even if electricity and fuel are used in their production and transport.

And the most economical heating in 2024 is…

For many years, wood heating has remained the most advantageous energy source. Indeed, it is the only energy source whose price has remained stable and even slightly decreased over the last 3 years, with sometimes slight seasonal variations. In detail, wood logs are still accessible below 9 euro cents per kilowatt hour (kWh).

Wood pellets returned to a price equivalent to wood in June 2024 but remain more sensitive to seasonal increases, therefore slightly higher than logs.

While there may be disparities between the different regions, the prices of wood logs or pellets remain much lower than the price of electricity, which now exceeds 25 euro cents per kWh. Indeed, electricity continues to increase in price in stages. A partial decrease is planned for 2025 for regulated tariffs, but significant increases are anticipated for 2026 by the French Electricity Union.

Like all fossil fuels, fuel oil experienced a sharp rise in 2022 following the Ukrainian conflict, but its price level returned in 2024 to a level corresponding to a more “normal” increase (+36% in 3 years). This now exceeds 12 euro cents per kWh.

The regulated gas tariff that had allowed consumers to avoid a very sharp increase during the crisis was abandoned in July 2023. Market prices no longer required this costly measure for the State. It should be noted that the price of gas has, however, almost doubled over 3 years, and that its future as a fossil fuel in domestic heating is very limited with the new environmental protection regulations. Its price has dropped to 13 cents, a slight decline after the sharp increases in 2022, but with continued average growth.

Fossil fuels have returned to a more normal price level after the Ukrainian crisis of 2022 and 2023, but remain subject to a continuous increase, and very sensitive to repeated international crises. This is currently the case with the events in the Middle East which have caused a sharp rise in the price of oil.

Details of prices 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: CRE benchmark rate, B1 rate, zone 1, excluding subscription

And the most ecological heating in 2024 is…

Compared to all existing energy sources, wood also remains the most ecological solution.

So for an oil boiler, greenhouse gas emissions are 11 times higher than those of wood.

A gas boiler produces a lot of CO2, almost 7 times more than wood heating.

Finally, even if electricity is considered a clean energy, it accumulates in total more than 5 times more greenhouse gas emissions than wood.

Illustrative image of the article via Depositphotos.com.