A pellet burner uses compressed wood or biomass pellets  to create a source of heat for residential and sometimes industrial spaces. By steadily feeding fuel from a storage container (hopper) into a burn pot area, it produces a constant flame that requires little to no physical adjustments. Today's central heating systems operated with wood pellets as a renewable energy source can reach an efficiency factor of more than 90%.

A properly cleaned and maintained pellet stove or boiler should not create creosote, the sticky, flammable substance that causes chimney fires. Pellets burn very cleanly and create only a layer of fine fly ash as a byproduct of combustion. The grade of pellet fuel affects the performance and ash output. Premium-grade pellets produce less than one percent ash content, while standard or low grade pellets produce up to six percent ash