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Alabama Electricity Prices

Average retail price by sector.

Residential
16.33¢ /kWh
▲ 0.6%vs. last year
Commercial
14.98¢ /kWh
▲ 3.4%vs. last year
Industrial
8.11¢ /kWh
▲ 4.5%vs. last year

Data current through August 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 →
$188per month▲ 3.4% vs. the year before

16.45¢/kWh × 1,141 kWh a month. Residential revenue divided by residential customers, averaged over the 12 months to August 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
$188
U.S. average
$158
Mississippi
$174
Florida
$169
Georgia
$164
Tennessee
$163

Alabama is $29 a month above (+18.5%) the U.S. average of $158. Average monthly bill, September 2025 – August 2026.

How Alabama makes its electricity

Fuel mix & trend since 2001 →Power plants →
Renewable
8.1%
Carbon-free
40.0%
Largest source
Natural gas 45%
Alabama electricity generation by source, September 2025 – August 2026
SourceShareGeneration
Natural gas45.4%65,706 GWh
Coal14.6%21,143 GWh
Nuclear31.9%46,164 GWh
Wind0.0%0 GWh
Solar1.2%1,676 GWh
Hydro4.8%6,944 GWh
Other2.2%3,176 GWh

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

Alabama electricity prices in context

Alabama's residential electricity rate in August 2026 stands at 16.33¢/kWh, ranking 26th most expensive among the 50 states and DC. This is 1.83¢/kWh below the national average of 18.16¢/kWh, putting Alabama about 10.1% cheaper than the US average. Among its neighbors, Georgia costs slightly more at 15.90¢/kWh, while Florida, Mississippi, and Tennessee are all less expensive, ranging from 14.99¢/kWh down to 13.42¢/kWh.

Over five years since August 2021, Alabama's rate has climbed 22%, from 13.38¢/kWh, and over twenty years since August 2006, it has risen 70.8%, from 9.56¢/kWh. Since records began in January 2001, the rate has more than doubled, climbing 158% from 6.33¢/kWh. The current rate remains below the state's recent high of 17.41¢/kWh set in April 2026, though well above the historical low of 6.33¢/kWh from January 2001.

The average Alabama household pays $188 per month for 1,141 kWh, compared to the national average of $158 for 876 kWh. Despite Alabama's rate being below the national average, higher usage means residents pay a larger monthly bill. Commercial rates stand at 14.98¢/kWh and industrial rates at 8.11¢/kWh.

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

12-month trend

ResidentialCommercialIndustrial
5¢10¢15¢20¢Sep '25Dec '25Mar '26May '26Aug '26ResidentialCommercialIndustrial

Price history since 2001

ResidentialCommercialIndustrial
0¢5¢10¢15¢20¢Jan '01Jun '07Nov '13Mar '20Aug '26ResidentialCommercialIndustrial

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

Residential

Jan '01
6.33¢
Now
16.33¢
Change
▲ 158.0%
Range
6.33–17.41¢

Recent months

MonthResidentialCommercialIndustrial
August 202616.3314.988.11
July 202616.4014.838.42
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

Prices in ¢/kWh.

Frequently asked questions

›How much does electricity cost in Alabama?
Residential electricity in Alabama costs 16.33¢ per kilowatt-hour as of August 2026, the 26th highest rate among the 50 states and DC. Commercial customers pay 14.98¢ and industrial customers 8.11¢ per kilowatt-hour.
›Why is electricity relatively cheap in Alabama?
Alabama's residential rate of 16.33¢/kWh is -9.6% versus the U.S. average of 18.07¢/kWh. What a household actually pays also depends on how much it uses: the typical Alabama home consumes 1,141 kWh a month against a national average of 876 kWh, which is why its average bill comes to $188.
›Have electricity prices in Alabama gone up?
Residential electricity in Alabama has risen 158.0% since 2001, reaching 16.33¢/kWh in August 2026. Over the last year alone the change was +0.6%.
›Is electricity cheaper in states neighboring Alabama?
Of the states bordering Alabama, Tennessee has the lowest average monthly bill at $163 and Mississippi the highest at $174. Alabama averages $188 a month, against a U.S. average of $158.