Heat pumps emerge as cheapest heating option in Poland as pellet costs rise 52%

Annual heating cost comparison

Polski Alarm Smogowy published its annual heating cost analysis based on fuel and energy price monitoring conducted in early September 2026 across 32 fuel depots, examining two sales points in each Polish voivodeship. The calculations evaluate a model single-family home of 150 square metres with a medium standard of thermal insulation, occupied by a four-person family and consuming 120 kilowatt-hours per square metre annually for heating and domestic hot water. Fuel oil proved to be the most expensive heat source at 14,880 PLN annually, though it remains a relatively uncommon option among Polish homeowners. Pellet heating ranked as the second most expensive method, requiring an annual expenditure of 12,852 PLN for the model household. Natural gas heating was calculated at 8,676 PLN per year, running nearly 4,000 PLN cheaper than pellet. Ground-source heat pumps paired with underfloor heating delivered the lowest annual operating cost at 4,700 PLN, while other heat pump configurations reached up to 7,189 PLN.

Factors behind rising pellet prices

The high cost of pellet heating stems from a sharp year-on-year price increase of 52 percent recorded between 2025 and 2026. Data from the monitored fuel depots showed that a ton of pellet cost an average of 1,487 PLN in September 2025, rising to 2,262 PLN by September 2026. An investigation by the Polish Office of Competition and Consumer Protection found that the price rise did not result from unlawful merchant practices. Instead, domestic production capacity failed to keep pace with rapidly accelerating consumer demand across the country. High demand persisted despite warnings issued in May 2026 about potential winter supply shortages and rising prices.

Spokesperson Piotr Siergiej pointed out the gap between alternative heat sources.

The difference in heating costs between pellet and a heat pump is shocking.

Subsidies, insulation, and building efficiency

Subsidies under the state-run Czyste Powietrze clean air program contributed to the surge in pellet demand across Poland. In 2025, 77 percent of subsidy applications for replacing obsolete boilers covered pellet and wood units, while heat pumps accounted for approximately one quarter. Approximately 450,000 households currently operate pellet boilers, representing an increase of more than 90,000 installations since 2023. Siergiej noted that persistent public perceptions regarding high electricity bills have driven continued interest in solid fuel boilers despite higher operational costs.

It is worth remembering that the choice of a heat source for our home should be well thought out and made after consultations with a reliable eco-advisor, installer, or energy auditor. Only in such a case can we avoid price surprises.

Building insulation levels heavily influence user satisfaction and actual operating costs for heat pump systems. Research by Polski Alarm Smogowy indicated that 51 percent of heat pump users living in uninsulated houses reported thermal discomfort and inadequate room temperatures. By contrast, only 14 percent of heat pump users in insulated buildings reported temperature problems. Furthermore, 25 percent of heat pump owners stated that heating expenses did not constitute a significant budget burden during the previous heating season. Conversely, purchasing fuel represented a very heavy financial burden for 28 percent of pellet boiler users.