A wood stove is an energy efficient heating appliance, typically using wood as the fuel, and wood-based biomass fuel, including sawdust or paper. In general the appliance is made up of a simple metal enclosed fire box, frequently lined with small fire brick, and at least one or more temperatures and control controls. Depending on the model, there may also be a storage box to store the wood in while the stove is not in use, which makes the stove very efficient both in energy consumption and its ability to burn wood. There are several different styles of wood pellet stoves, including those that are directly mounted to the roof of the home (which requires more building) and those that are built into the wall, either as part of the wall itself, or as an extension of the wall. A wall mounted stove can also have a chimney, but a chimneyless stove will require less building, as it does not require a front wall for installation.

The other major difference between a wood pellet stove and a heat pump heating system is that heat pumps utilize air conditioners to push heated air through ductwork; in effect, the heat pump operates almost like an air conditioning unit. While some heat pumps can actually be positioned inside the home in order to provide some extra off-grid electricity, most heat pumps are located outdoors in parking lots, basements, or anywhere else that may be convenient for placement. As a result, they can be much more expensive to install, since the size of the unit is often a factor in cost. By contrast, most wood pellet stoves only need space for their heat source, making them far more affordable, even for single-family homes.

Because the efficiency of wood pellets is such a large factor in the cost of electricity, it makes sense that investing in a wood pellet stove could save you thousands over the course of its lifetime. By investing in an off-grid system that uses electricity from the grid, you can enjoy long-term savings while reducing your environmental footprint. The more money that you can save on utilities bills, the more money you can put back into the economy so that energy costs do not increase again. However, even if you do not use a wood pellet stove or an off-grid system, by switching to a "greener" utility you can help the environment and save some money. It just makes sense!