Pellet fuel appliances burn compacted pellets usually made of wood, but they can also be derived from other organic materials. Some models can burn nutshells, corn kernels, and small wood chips.

Pellet fuel appliances are more convenient to operate than ordinary wood stoves or fireplaces, and some have much higher combustion and heating efficiencies. As a consequence of this, they produce very little air pollution. In fact, pellet stoves are the cleanest solid fuel, residential heating appliance. Pellet stoves that are certified by the EPA are likely to be in the 70% to 83% efficiency range. Pellet stoves have heating capacities that range between 8,000 and 90,000 Btu per hour. They are suitable for homes as well as apartments or condominiums