This paper focuses on two main research topics: the situation in the field of wood energy efficiency utilization in households in the region of Southwestern Serbia, and econometric modelling of wood energy consumption dependent on the size of the heating surface, the existence of thermal insulation on residential buildings, the age of heating appliances and moisture content of wood fuels. The results of the conducted research showed that the consumption of wood energy in most household’s ranges between 300 and 400 kWh/m2. This is considered energy inefficient. Although in the majority of households the size of the heating surface ranges between just 20 and 80 m2, exactly in these households the highest and the most inefficient consumption of wood energy expressed in kWh/m2 was registered. The first reason for the high consumption of wood energy is the fact that only 29% of residential buildings have thermal insulation, while 71% do not have any thermal insulation. Additionally, the wide diffusion of heating appliances aging over ten years and firewood with the average moisture content of 37% further contribute to such unfavourable situation in terms of energy efficiency. The parameters of the obtained econometric model of wood energy consumption clearly show that the greatest savings in the consumption of wood energy in the short term could be obtained by improving the condition of the thermal insulation of the residential buildings, replacing the old heating appliances with the new and the more efficient ones, as well as by using drier firewood.