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The Basics of a Wood Pellet Stove A pellet stove is heated with wood pellets. Pellets are purchased in bags and dumped into an hopper that is controlled by a thermometer. The stove also has a fan that blows the warm air into the room. They can be used in virtually any home. It's important to consider the physical features of your house, including the ceiling's height. Efficiency The effectiveness of a pellet stove is determined by the quality of the heating pellets used. Premium-grade pellets have less than one percent ash content Wh