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Alabama Electricity Prices

Average retail price by sector.

Residential
16.40¢ /kWh
▲ 2.1%vs. last year
Commercial
14.67¢ /kWh
▲ 1.0%vs. last year
Industrial
7.92¢ /kWh
▼ 3.4%vs. last year

Data current through June 2026 — the latest available from the U.S. EIA, which publishes monthly figures on a roughly two-month delay.

Average monthly bill

Full bill breakdown →
$185per month▲ 2.6% vs. the year before

16.39¢/kWh × 1,127 kWh a month. Residential revenue divided by residential customers, averaged over the 12 months to June 2026 — the 4th highest among the 50 states and DC.

Compared with the U.S. and neighboring states

Average monthly residential electricity bill, in US dollars
Alabama
$185
U.S. average
$156
Mississippi
$170
Florida
$168
Tennessee
$163
Georgia
$161

Alabama is $29 a month above (+18.4%) the U.S. average of $156. Average monthly bill, July 2025 – June 2026.

How Alabama makes its electricity

Fuel mix & 10-year trend →Power plants →
Renewable
8.3%
Carbon-free
40.5%
Largest source
Natural gas 45%
Alabama electricity generation by source, July 2025 – June 2026
SourceShareGeneration
Natural gas44.9%64,076 GWh
Coal14.6%20,847 GWh
Nuclear32.3%46,076 GWh
Wind0.0%0 GWh
Solar1.1%1,540 GWh
Hydro4.9%7,056 GWh
Other2.3%3,251 GWh

142.8 TWh of net generation over the 12 months to June 2026. Generation, not consumption — power crosses state lines.

Alabama electricity prices in context

Alabama's residential electricity rate stood at 16.77¢/kWh in May 2026, ranking it 24th among the 50 states and DC for cost. This placed the state below the national average of 18.44¢/kWh, making it 9.1% cheaper than the US typical rate. Among bordering states, Alabama's rate fell between Tennessee at 14.47¢/kWh on the lower end and Mississippi at 16.16¢/kWh, with Georgia at 15.84¢/kWh and Florida at 15.17¢/kWh also nearby.

Over the past five years since May 2021, the rate climbed 25% from 13.42¢/kWh. The two-decade rise since May 2006 was even steeper at 93%, from 8.69¢/kWh. Since records began in January 2001, the rate has increased 164.9% from its low of 6.33¢/kWh. The current price remained below the state's recent high of 17.41¢/kWh set in April 2026.

The typical Alabama household paid $185 monthly for 1,128 kWh of electricity, compared with the national average monthly bill of $155 for 871 kWh. Despite paying a below-average rate per kilowatt-hour, residents consumed significantly more electricity than the national average, resulting in a higher overall bill. Commercial rates were 14.51¢/kWh and industrial rates were 7.89¢/kWh as of May 2026.

Written from the EIA figures on this page, covering data through May 2026.

12-month trend

ResidentialCommercialIndustrial
6.6¢9.5¢12¢15¢18¢Jul '25Oct '25Jan '26Mar '26Jun '26ResidentialCommercialIndustrial

Price history since 2001

ResidentialCommercialIndustrial
2.4¢6.5¢10¢14¢19¢Jan '01May '07Oct '13Feb '20Jun '26ResidentialCommercialIndustrial

Average retail price in all three sectors, every month since January 2001.

Residential

Jan '01
6.33¢
Now
16.40¢
Change
▲ 159.1%
Range
6.33–17.41¢

Recent months

MonthResidentialCommercialIndustrial
June 202616.4014.677.92
May 202616.7714.517.89
April 202617.4114.447.84
March 202617.1515.077.62
February 202616.1815.007.50
January 202616.0615.108.29
December 202516.0114.957.80
November 202516.0814.387.66
October 202516.7214.687.41
September 202516.4314.427.81
August 202516.2414.497.76
July 202515.9314.598.12

Prices in ¢/kWh.

Frequently asked questions

›How much does electricity cost in Alabama?
Residential electricity in Alabama costs 16.40¢ per kilowatt-hour as of June 2026, the 24th highest rate among the 50 states and DC. Commercial customers pay 14.67¢ and industrial customers 7.92¢ per kilowatt-hour.
›Why is electricity relatively cheap in Alabama?
Alabama's residential rate of 16.40¢/kWh is -8.5% versus the U.S. average of 17.92¢/kWh. What a household actually pays also depends on how much it uses: the typical Alabama home consumes 1,127 kWh a month against a national average of 870 kWh, which is why its average bill comes to $185.
›Have electricity prices in Alabama gone up?
Residential electricity in Alabama has moved +159.1% since 2001, reaching 16.40¢/kWh in June 2026. Over the last year alone the change was +2.1%.
›Is electricity cheaper in states neighboring Alabama?
Of the states bordering Alabama, Georgia has the lowest average monthly bill at $161 and Mississippi the highest at $170. Alabama averages $185 a month, against a U.S. average of $156.