Independent resource. Not affiliated with any utility or energy provider. Data sourced from the U.S. Energy Information Administration.Verified July 2026
Alabama Electricity Cost 2026: 16.77¢/kWh
Alabama residential electricity rates average 16.77 cents per kWh in 2026, -9.1% vs the 18.44¢ US national average. The state operates a regulated retail market with natural gas as the primary generation source.
State Rate
16.77
cents/kWh
Monthly Bill
$145
at 863 kWh
vs National
-9.1%
national avg 18.44¢
Rank (cheapest first)
28/50
YoY change +3.8%
Market Type
Regulated
Supply rate set by state PUC
Primary Generation
Natural Gas
per EIA State Energy Profile
Annual Bill (avg usage)
$1,737
vs national $1,910
Alabama electricity market
Regulated state served primarily by Alabama Power (a Southern Company subsidiary), Tennessee Valley Authority in the north, and a network of electric cooperatives in rural areas. Generation mix is heavily natural gas with significant nuclear baseload from the Browns Ferry and Joseph M. Farley plants.
Where Alabama residents save
Supply rates cannot be shopped in Alabama. The biggest residential lever is efficiency: smart thermostat schedules during the long AC season, attic insulation in homes built before 2000, and shifting laundry / dishwasher to off-peak windows where utilities offer time-varying pricing.
Primary utilities
- Alabama Power
- Tennessee Valley Authority (TVA)
- Alabama Electric Cooperatives
Alabama bill estimates by usage
| Home Profile | Monthly kWh | Monthly Bill | Annual Bill |
|---|---|---|---|
| Apartment | 500 | $84 | $1,006 |
| Small house | 750 | $126 | $1,509 |
| Average household | 863 | $145 | $1,737 |
| Large house | 1200 | $201 | $2,415 |
| Large house + EV | 1500 | $252 | $3,019 |
Estimates use the Alabama state-average rate of 16.77¢/kWh from EIA data. Your actual bill includes delivery charges, customer-service fees, and state/local taxes already blended into this retail rate, plus any locality-specific surcharges not captured at the state-average level.