Is it cheaper to heat a building burning wood?

Is It Cheaper to Heat a Home with Wood?

Heating a home with wood has long been considered one of the most cost-effective ways to stay warm in New Zealand, particularly in regions like Wellington where winter heating demand is high. Whether it is actually cheaper than electricity, gas, or heat pumps depends on several key factors including the cost of firewood, appliance efficiency, insulation levels, labour, and long-term running and maintenance costs.

Below is a clear, practical breakdown to help homeowners make an informed decision.

1. The True Cost of Firewood in Wellington and the Lower North Island

Firewood prices vary by season, location, and wood type. As a general guide:

• Pine: Lower upfront cost, burns faster, produces more ash

• Macrocarpa: Mid-range price, steady heat output

• Hardwoods (e.g., Blue Gum, Manuka): Higher purchase cost but longer burn times and greater heat output

Typical costs range from per cubic metre delivered upwards depending on supply and winter demand. While wood may appear cheap per unit of fuel, the total winter cost depends heavily on how efficiently the heat is retained inside the home.

Homes with poor insulation, single glazing, and draughts will consume significantly more wood to maintain comfort.

2. Efficiency of Modern Wood Burners vs Older Units

Not all wood burners are equal. Key efficiency differences include:

• Older wood burners: Often 40–60% efficient, higher wood consumption

• Modern clean-air compliant burners: Typically 70–80% efficient

• Wetback systems: Can offset hot water heating costs when correctly designed

A modern high-efficiency wood burner can dramatically reduce both fuel use and indoor air pollution while improving heat output consistency.

3. Comparing Wood Heating to Other Energy Sources

While exact costs change with market pricing, wood heating is generally:

• Cheaper than electric resistance heaters

• Competitive with heat pumps in insulated homes

• Often cheaper than bottled LPG

• Sometimes more economical than piped gas in high-use households

However, unlike electricity or gas, wood requires:

• Physical handling and storage

• Time for starting and managing fires

• Regular flue and chimney cleaning

• Ash removal and fire safety management

These “hidden costs” are often overlooked but should be considered in the total cost of ownership.

4. House Size, Insulation, and Layout Matter More Than Fuel Choice

Whether wood heating is cheaper than other options depends largely on:

• Ceiling and underfloor insulation

• Double vs single glazing

• Air-tightness and draught control

• Ceiling height and open-plan layouts

• Number of heated rooms

A well-insulated home with a centrally located wood burner may require only modest quantities of firewood each winter, making wood extremely cost-effective. Poorly insulated homes may spend more on wood than they would on a high-efficiency heat pump.

5. Environmental and Compliance Considerations in Wellington

Wellington has strict clean-air standards for wood burners:

• New installations must meet clean-air emission standards

• Some suburbs restrict certain burner types

• Only compliant low-emission appliances can be legally installed

• Уproper flue installation and safety clearances are mandatory

From an environmental perspective, sustainably sourced wood is considered a renewable energy source, but inefficient burning can increase air pollution.

6. When Wood Heating Is Usually the Cheapest Option

Wood heating is often the most cost-effective choice when:

• Firewood is sourced cheaply or self-supplied

• The home is well insulated and airtight

• A modern high-efficiency burner is installed

• The house is occupied for long periods in winter

• There is space for proper wood storage

It is especially attractive for rural and semi-rural properties where wood supply is plentiful and electricity prices are higher.

7. When Wood Heating May NOT Be Cheaper

Wood heating may not be the cheapest option when:

• Firewood must be purchased at retail winter prices

• The burner is old and inefficient

• The property is poorly insulated

• Labour, storage, and maintenance are factored in

• Convenience and automation are a high priority

In urban settings, heat pumps often provide better cost-to-convenience ratios for many households.

Final Summary: Is Wood Heating Cheaper?

Yes — wood heating can be cheaper than electric or gas heating, particularly in well-insulated homes with access to affordable firewood and a modern high-efficiency wood burner. However, when labour, maintenance, storage, and compliance costs are included, the actual savings vary significantly from one household to another.

For some homeowners, wood offers the lowest running cost per winter. For others, modern electric heat pumps may be cheaper in practice when time, convenience, and automation are factored in.