Pellet stoves typically range in price from $1,700 to $3,300, depending on the quality and features of the appliance. Installation costs are fairly low, usually from $350 to $550, because a pellet stove doesn't require a chimney but only a straightforward 3"-4" venting system. Many stoves can be vented horizontally, directly through an outside wall, and no special materials on the surrounding walls are required. See also the article on corn pellet stoves and multi-fuel pellet stoves.

A major factor to consider is the cost and availability of wood pellets. The huge rise in popularity of pellet stoves has taken suppliers by surprise and led to shortages of wood pellets and steeply rising prices across the US and Canada. Today, pellet fuel costs nearly four times what it did in 1982, often making it the most expensive heating alternative next to electricity. Be sure that you can get a regular, economic supply of pellets in your area before going ahead with your purchase.

Also bear in mind that a pellet stove needs electricity to run its exhaust fan, circulating blower, and auger motor. Not only does this add over $100.00 per year in power usage for the average pellet burner, but replacement expenses must be factored in as well, as these motors wear out and eventually break down.

Conventional wood stoves may lack some of the convenience features of pellet stoves but they run on ordinary fuel wood, which will always be much cheaper than pellets.