Wood Pellet Wood pellets are made to be burned in high-efficiency boilers (for central heating) and in pellet stoves (for space heating). Pellets are made from wood, often waste wood from mills and furniture manufacturing. Pellet stoves can be a good way to supplement the heating in your home, but they are not necessarily a carbon neutral form of heating unless they burn to maximize efficiency and are made from wood sources that are properly replaced. Sustainably harvested wood fuels offer a low-emissions heating source compared to conventional heating fuels like natural gas or fuel oil and compared to regular wood burning fireplaces and stoves. The U.S. Department of Energy provides detailed information on wood and pellet heating systems. Incentive Information High-efficiency heat pump incentives Contact Us Sarah Doherty Thermal Decarbonization Manager sarah.doherty@energy.ri.gov