Do wood-burning stoves save money?

It is one of the most common questions people ask about stoves, and the honest answer is: it depends. A wood burner can reduce how much gas, oil or electricity you use, but it can also cost more to run than your existing heating. This guide explains the factors so you can judge your own situation. It does not promise any saving, because none can be guaranteed.

In short

• Whether a stove saves money depends mainly on what you pay for logs, what heating it replaces, and how you use it.
• On current figures, heat from bought-in logs can work out similar to, or more expensive than, mains gas, but often cheaper than standard-rate electricity.
• Upfront installation costs, chimney sweeping and your time all need factoring in. Energy and fuel prices change, so any comparison is a snapshot.

An illustrative cost comparison

The figures below are illustrative only. They are based on published prices at the time of writing in October 2026 and will change. Your actual costs will differ.

Gas and electricity

Under Ofgem's energy price cap for 1 October to 31 December 2026, the average unit rates for customers paying by Direct Debit are about 7.97p per kWh for gas and 26.32p per kWh for electricity, plus daily standing charges. The cap is reviewed every three months, and rates vary by region and tariff.

A modern gas boiler converts most of that gas into heat. Allowing for a boiler that is, say, 85 to 90% efficient, the cost of useful heat from gas is roughly 9p per kWh. Electric heaters turn almost all their electricity into heat, so the cost of useful heat is about the unit rate, around 26p per kWh. Heat pumps are much more efficient than that, so the comparison with them is different again.

Logs

According to Forest Research, air-dried logs at 20% moisture contain about 4.1kWh of energy per kilogram. Published UK prices for logs commonly fall somewhere around £250 to £500 per tonne, depending on type, supplier, quantity and whether they are kiln-dried. That works out at roughly 6p to 12p per kWh of fuel energy.

A modern Ecodesign stove might achieve around 70 to 85% efficiency in good conditions, according to HETAS. Using 75% as an example, the cost of useful heat from bought logs would be roughly 8p to 16p per kWh.

What that suggests

• Compared with mains gas, heat from bought logs may cost about the same or more.
• Compared with standard-rate electric heating, logs can work out cheaper per unit of heat.
• Compared with oil or LPG, which are common in rural areas off the gas grid, the picture depends heavily on current prices for those fuels.
• If you have free or very cheap wood that you can season properly yourself, the running cost can be much lower, but only if it is dried to 20% moisture or less.

Factors that make the biggest difference

Fuel quality

Wet wood wastes energy boiling off water, burns cooler and produces more smoke and soot. HETAS estimates that £200 or more of wood can go up the chimney each winter through poor burning. Dry wood is essential. See our guide to the best wood to burn.

How you use the stove

A stove heats the room it is in very effectively. Many people find they can turn the thermostat down or heat fewer rooms with central heating in the evening while the stove does the work in the main living space. Whether that leads to a lower bill depends on your home and habits.

Right size, right setup

An oversized stove that is constantly turned down burns inefficiently. A correctly sized stove, installed with a well-drawing flue and the right ventilation, gives you more heat for your fuel. Our guide to sizing a stove explains how this is worked out.

Upfront and ongoing costs

Installation is the largest single cost and can take many years to recover through lower bills, if it is recovered at all. Our installation cost guide sets out typical ranges. You will also need to budget for annual sweeping, occasional replacement seals and glass, and somewhere dry to store logs.

Benefits beyond the bill

For many households, the real value of a stove is not purely financial:

• Resilience. A stove gives you a source of heat that does not depend on mains electricity, which some people value in rural areas prone to power cuts.
• Fuel choice. It spreads your heating across more than one fuel, so you are less exposed to price changes in any one of them.
• Comfort. Radiant heat and a real fire make a living room feel warm and welcoming.

Do it legally and safely

If you live in a smoke control area, you must use a Defra-exempt stove to burn wood, or burn authorised smokeless fuel. In England, a carbon monoxide alarm is required when a new stove is installed, and the installation must be certified under the Building Regulations. Read more in our guide to stove regulations in England.

So, is a stove worth it?

A stove can reduce reliance on other fuels, and some households find it lowers their heating costs, but it is not guaranteed to save you money. The best way to judge is to compare your own fuel prices and usage with a firm, written quote for installation. If you would like advice on what a stove would involve in your home, get in touch to arrange a survey and a no-obligation quote.