Pellet stoves are energy efficient, and some models are significantly more efficient than wood stoves and fireplaces. The stoves' high efficiency helps to make them the least-polluting solid fuel used for home heating.
Another benefit is relatively low installation costs. A freestanding pellet stove typically doesn't require a chimney or flue pipe, and a pellet-stove insert uses an existing fireplace. Most models have built-in storage for at least a day's worth of pellets. Because of the high cost of the pellets, pellet stoves have a relatively high cost-per-unit of heat produced compared to wood stoves and natural-gas and coal heating appliances.