I have heated with both a pellet stove and a wood stove. There are pros and cons for both. For me and partly because of the south facing orientation of the house, the pellet very well and I believe is the right choice for us.
A wood stove does generate more heat quicker than a pellet stove but I believe that is only of value when your house has gone completely cold for whatever reason. Dealing with wood is also a very messy business. If you are going to store wood inside, your going to need a separate room for it. The bark is always a pain to deal with and storing enough to last a winter takes a lot of space! If you are storing your wood properly, it is going to need to be at the very least covered. Then you need to be sure your wood is dry. You should be buying you wood at least a year ahead of time. It takes a long time for hardwood to properly dry.
With a pellet stove, there are more moving parts that need to be maintained. Since we have had this particular stove (15 years now) I have had to replace two of the fans and the heating element. And it needs electricity to run. The pellet bag are heavy and a can be tricky to handle. The pellet stove can not put out the kind of heat a wood stove can. But I don't need a separate room for the pellets. They come from the manufacturer dry and ready to burn. They are derived on wooden pallet covered by heavy plastic bags. I leave them outside in the driveway. I take the plastic bag off and bring in 20 bags at a time as I need them. This takes up very little room. Because I use a good quality pellet, there is very little ash and I only have to clean my chimney once a year. There is just so little mess and cleanup involved. As for the power issue, there are many kinds of battery backup systems out there now so that really doesn't have to be an issue anymore.
So for this house the pellet stove is the way to go. This will not apply to all houses for sure but it fits very nicely for us.
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