What’s the best way to store the wood pellets?

First and foremost:  Keep ‘em dry!  And, preferably inside the garage, shed, basement or utility room if you can.  Pellets can be purchased in bulk, but most customers buy pellets in convenient 40 lb. bags.  Dealers will sell individual bags, but as a homeowner your best value is to purchase pellets by the ton.  That is fifty, 40 lb. bags shrink-wrapped on a 4’ x 4’ pallet.  If you’re serious about heating your home and making your conventional furnace work a lot less, plan to buy 2, or 3, or 4 tons of pellets, depending on how cold your winter’s can be.  For three tons of pellets, plan to use a space approximately 6’ wide x 6’ deep x 6’ high.  This is considerably less space than a season’s worth of cordwood would require!