Wood fired boilers are generally considerably more expensive than fossil fuel fired systems. For example wood chip fired systems typically range from between 10% to 100% (i.e. double) the cost of equivalent size oil-fired systems. The reasons for this are two fold:

1. Wood fired systems are dealing with a more difficult lumpy fuel and hence the physical construction must be more robust (e.g. the feed mechanism)
2. The number of oil fired heating systems built each year is far greater than the number of wood fired systems. The volume production has an important bearing on the price

Prices for pellet boilers range from £2,500 for 25kW boiler to £6,700 for an 80kW one. However, the cost per kW installed is approximately £150-£250 and varies depending on make, specification and size. For larger boilers the costs can come down to approx £100 per kW installed.

The cost for boilers varies depending on the fuel choice; a typical 20kW (average size required for a three bed semi detached house) pellet boiler would cost around £5000 installed, including the cost of the flue and commissioning.