Pellet Boilers are HUD Approved

Every year, Kedel experiences at least one bank or potential customer falling victim to misinformation about the federal status and financial aspects of pellet boilers. Pellet boilers have been in use for over 20 years throughout parts of Europe, but in the US are often seen as a new technology. We are working hard to help bring everyone up to speed and because of this delay in adoption, it is necessary to clear the record and emphasize how pellet boilers are an HUD approved “acceptable primary heating source”.


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Until 2012, HUD did not recognize pellet boilers as an, “conventional primary heating source”. This made it difficult for homeowners to receive FHA financing and stopped many homeowners from purchasing a pellet boiler. Additionally, we heard from several customers that their mortgage companies gave them difficulty in refinancing their home because of this lack of recognition.

However, have no fear, for in 2012 Maine Senator Susan Collins worked in collaboration with Shawn Donovan, the Secretary of Housing and Development to update these guidelines. After an extensive review process, Donovan immediately agreed with the information Senator Collins presented and called to modify program rules to accept pellet boilers as an “acceptable heating system for homes under our insurance program”. Shortly after, HUD updated their regulations concerning pellet boilers.

kedelphotoIf a bank or another institution is being difficult and claims that pellet boilers are not a certified primary heating source, please refer them to this blog or the Updated Regulations. Pellet boilers are an efficient, sustainable, and affordable way to heat one’s home and it is imperative to combat this misinformation.

Quotes in this post are from this article.