If you're using gas, propane or oil to heat your home, the utility bills can be staggering. Even worse, they fluctuate, and they can skyrocket unpredictably. The cost of wood pellets, though, has remained fairly stable over the last 10 years [source: Fireplaces.com].
The way most people save money using wood pellet fireplaces is by installing them in rooms where they spend the most time, like the living room or den. The fireplace keeps that room warm and toasty, so if you're still using central heating for the rest of the home, you can lower the thermostat.
There are also whole-house pellet heating systems. Some work as standalone systems, while others are actually integrated into the central heating system.