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Choosing Between a Wood and Pellet Stove Wood and pellet stoves come in a variety of styles that fit into preexisting fireplaces. They are attractive and provide warmth to homes. Pellet stoves generate hot air through the burning of wood waste like shavings and sawdust. They also employ fans to push exhaust gases through specially designed venting systems. Cost When comparing wood heat stoves to pellet stoves, their cost is the most significant factor. While pellet stoves can be more expensive