With the cost of energy representing an ever-larger chunk of the average American household’s budget, many homeowners are looking toward alternative fuel sources to heat their homes. Increasingly, they are turning to pellet stoves as a supplemental (or in some cases, primary) heat source.

Pellet stoves look similar to wood stoves or fireplace inserts, but the similarities end there. Instead of burning wood, they burn small pellets typically made from recycled wood shavings, sawdust, or corn. Inside, they are very sophisticated combustion appliances that offer low-cost heating. (For more on this, see Pellet Stoves: Advantages of Burning Pellets and Pellet Stove Energy Cost Comparisons.)

Most pellet stoves produce a small fire that, concentrated in the center of the unit, burns hot. If you like the look of a fire, try to find a unit with a good flame pattern and a large viewing glass. For pellet stoves, you can get ceramic logs that help disperse the flames and give the fire a more traditional look.

One drawback of pellet stoves is that they’re relatively complex. As shown in How a Pellet Stove Works, they have a variety of moving parts and motors that require maintenance, it’s a good idea to select a model that gives you easy access to its parts. It’s also not a bad idea to get a service contract.

When choosing between a bottom- or top-fed pellet stove, consider the benefits and drawbacks of each.

A top-fed stove has a lesser chance of fire burning back into the hopper because of its pellet delivery system. But the combustion chamber is more likely to become impeded with ash and clinkers (the deposits caused by reheating ash). As a result, many manufacturers of top-fed models recommend burning high-grade, low-ash pellets.

Why we like it: • Wood-fire-like flame • Great warranty • Instructional video * Push-button ignition

Bottom-fed models don’t require premium fuel because the ash and clinkers are pushed into the ash pan. But, with steady use, you will have to remove the ashes about once a week. An easy-to-use, large-capacity ash access drawer makes cleanup easier.

The motors of a pellet stove, of course, require electricity (some models have battery backup units), so it should be positioned near a 110-volt outlet. If you live where power outages are frequent, and the stove does not have battery backup, you may want to have a gas-powered generator on hand.

Pellet stoves are measured in heat output range, also called heating capacity. Most have a rating of 8,000–90,000 BTUs (British Thermal Units) per hour. To choose the right-size pellet stove, work with a knowledgeable dealer who can take into account the many variables that will determine the best choice for you.

A variety of styles are available in both freestanding stoves and fireplace inserts. Some manufacturers also make pellet-fueled furnaces and boilers that are designed to take the place of, or supplement, conventional forced-air heating systems.