World events are shaping remote, rural villages
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As I started talking to people and doing a bit of reading, an interesting story emerged. The invasion of Ukraine sent shockwaves through European energy markets that are still reverberating today. Then came the bombing of Iran and closure of the Straits of Hormuz. The result: Spain is now offering more incentives for homes and businesses to switch to pellet stoves and boilers.
Along the Camino, pellet stoves showed up everywhere, each in its own context. In one hotel lobby, a stove had a large handwritten note: “Do not touch.” In a general store, one was surrounded by a small safety fence. In an upscale eatery, the pellet stove was part of a carefully curated retro aesthetic. They clearly add a sense of coziness—but like everywhere else, the real driver is economics.
We saw several Italian models, but the most common seemed to be made in Galicia in Northwest Spain by Ecoforest. One popular model, the Bolonia, is strikingly slim—designed to fit even in a hallway. Ecoforest also makes heat pumps, and with smart thermostat software, the two types of heaters can switch back and forth depending on outdoor temperatures and heating needs.
In Spain, incentives are often targeted at towns with fewer than 5,000 residents, part of a broader effort to combat rural depopulation and support areas without access to natural gas networks. These programs align with European Union funding frameworks aimed at sparsely populated and economically disadvantaged regions, with some funding coming directly from the EU.
Incentives are handled regionally, not nationally, and usually involve documentation from both a qualified installer and a local permit. When an existing stove is simply swapped out for a new one, there is less paperwork to access incentives, but DIY installs are rare whether incentives are involved or not. Professional installation is required and stoves must be registered with the local authority. The trail we walked went through two regions - Galicia and Asturias - and both have generous subsidies but Galicia's are even more generous leading to a greater use of pellet heating. In some provinces, subsidies are more if you are reducing reliance on coal or oil, and less for electricity. In others, household income may have more of an impact, and residing in a rural area or small town almost always increases the amount. Both equipment cost and installation are covered with total costs usually coming to 3,000 - 5,000 Euros ($3,500 0 $5,800 US). and the incentive usually between 30 - 50%.
Cordwood heating
Cordwood heating is still more common than pellet heating, though it receives few if any incentives. A few things stood out to me. Firewood lengths were often surprisingly short—frequently just 8–10 inches, and rarely more than 14–16 inches. Wood was almost always stored under a roof, and much of it looked like it had been seasoning for several years.
That suggested a mature, long-standing wood heating culture where the importance of properly dried wood is well understood. Interestingly, the shorter log lengths didn’t seem tied to stove size. Many older rural stoves are sized more like U.S. stoves and bear little resemblance to the more modern, sleek, vertically oriented European models.
One rural restaurant along the trail—also offering a few guest rooms—used a wood-fired cookstove that piped hot water upstairs. While I was there, the good-natured cook was cursing the stove, which had just started leaking. It was a reminder that these hot water systems can lead, and also they ca be fixed by the owner.
Spain, like the rest of Europe, has at least a 3,000-year head start on wood heating and forest harvesting. We saw countless stone homes that looked 500 years old, many with equally old chimneys still in use. That long history is also visible in the landscape: massive trees continue to be coppiced, a practice where branches are cut regularly for fuel and allowed to regrow—a system still actively used today.
Heavy deforestation began during Roman times about 2,000 years ago and peaked between 1850 and 1920, much like in the United States. But the legacy of that history feels more visible in Spain. Unlike the U.S., where large natural forests remain, many of the forests we saw appeared to be plantations, and not always managed sustainably.
As in the U.S., most wood demand is driven by construction, not firewood. Firewood use is relatively small by comparison.
National heating trends
Reliable data on how many Spanish homes use wood or pellet heating is hard to pin down, but most estimates suggest that 15–20% of homes use wood or pellets as a primary or secondary heating source. Up to 5% may rely on it as their primary fuel.
Spain is less densely populated than countries like France, Germany, or Italy, but it is also warmer, and wood and pellet heating are less established. Unlike Austria, France, Germany, and Italy, Spain has not historically provided strong incentives for pellet stoves and boilers—though that is now changing.
Global energy disruptions are shifting the equation. Locally sourced, renewable energy is becoming more attractive compared to fossil fuels that must travel long distances. This provides not only more stable prices, but a healthy diversity of local sources of electricity.
Spain’s population is about 49 million—roughly 10 million more than California—and rural depopulation is a significant issue. Energy policy is increasingly being used as a tool to support small-town economies.
Most of Spain has relatively mild winters, and about 30% of homes lack central heating. As in Italy, this makes pellet stoves a practical option for heating the core of the house rather than whole-home systems. In the colder, mountainous northern regions—which are also more forested—winters are harsher, and in some areas up to a third of homes still use wood or pellets.
Spain produces, exports and imports wood pellets which are almost entirely used for small and large heating systems. Many pellet plants are co-located with sawmills or carpentry shops. In some regions, biomass boilers also burn olive pits, nut shells, and, to a lesser extent, sunflower husks. Most pellet production happens in rural areas, so incentives for pellet heating also function as support for local businesses.
Electric rates and pellet heating
At the same time, broader trends are shifting. Since 2022, electricity prices in Spain and much of Europe have stabilized or declined, while pellet prices have risen.
Where we were hiking, in the mountainous northwest, wind turbines were everywhere. The expansion of wind energy there—and solar in the south—has helped bring electricity prices down. As a result, Spain now has some of the lowest electricity rates in Europe.
Conclusion
If you enjoy hiking, I highly recommend the Camino Primitivo—or any of the caminos in Spain. You pass
Along the way, you don’t just see beautiful landscapes—you also witness thousands of years of human history, including the evolution of how people heat their homes. And that history is still unfolding, as Spain begins to embrace a new generation of pellet heating.
Further reading
Spanish Energy Efficiency Grants in 2025
How Spaniards Can Get a Subsidy to Replace an Old Boiler
Subsidies to fund the energy transition
USDA Spanish Wood Pellet Market Outlook 2023
Rules for Wood Burners in Spain
Spain Sees Increase in Pellet Fuel Market
Ecoforest celebrates 30 years of innovation in sustainable HVAC equipment
