If you are looking for a way to save money on heating costs, a pellet stove may be the solution. Pellet stoves have been a popular alternative heat source for a number of years. They are much easier to maintain than a traditional wood stove and they are more economical than gas heat. Wood pellets are basically the sawdust that is left after milling. The pellets are put in a hopper and slowly fed through an auger since they are condensed and compact, they take longer to burn.