Home / Alabama

Alabama Electricity Prices

Average retail price by sector. Latest data: May 2026.

Residential
16.77¢ /kWh
3.8%vs. last year
Commercial
14.51¢ /kWh
2.0%vs. last year
Industrial
7.89¢ /kWh
4.2%vs. last year

Average monthly bill

Full bill breakdown →
$185per month 2.5% vs. the year before

16.35¢/kWh × 1,128 kWh a month. Residential revenue divided by residential customers, averaged over the 12 months to May 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
$155
Mississippi
$169
Florida
$169
Tennessee
$162
Georgia
$161

Alabama is $29 a month above (+18.7%) the U.S. average of $155. Average monthly bill, June 2025 – May 2026.

How Alabama makes its electricity

Fuel mix & 10-year trend →Power plants →
Renewable
8.4%
Carbon-free
40.3%
Largest source
Natural gas 45%
Alabama electricity generation by source, June 2025 – May 2026
SourceShareGeneration
Natural gas44.9%64,073 GWh
Coal14.8%21,077 GWh
Nuclear31.9%45,485 GWh
Wind0.0%0 GWh
Solar1.0%1,487 GWh
Hydro5.1%7,251 GWh
Other2.3%3,257 GWh

142.6 TWh of net generation over the 12 months to May 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¢Jun '25Sep '25Dec '25Feb '26May '26ResidentialCommercialIndustrial

Residential history since 2001

5.4¢8.7¢12¢15¢18¢Jan '01May '07Sep '13Jan '20May '26
Jan '01
6.33¢
Now
16.77¢
Change
164.9%
Range
6.3317.41¢

Recent months

MonthResidentialCommercialIndustrial
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
June 202516.0614.538.20

Prices in ¢/kWh.

Frequently asked questions

How much does electricity cost in Alabama?
Residential electricity in Alabama costs 16.77¢ per kilowatt-hour as of May 2026, the 24th highest rate among the 50 states and DC. Commercial customers pay 14.51¢ and industrial customers 7.89¢ per kilowatt-hour.
Why is electricity relatively cheap in Alabama?
Alabama's residential rate of 16.77¢/kWh is -6.0% versus the U.S. average of 17.84¢/kWh. What a household actually pays also depends on how much it uses: the typical Alabama home consumes 1,128 kWh a month against a national average of 871 kWh, which is why its average bill comes to $185.
Have electricity prices in Alabama gone up?
Residential electricity in Alabama has moved +164.9% since 2001, reaching 16.77¢/kWh in May 2026. Over the last year alone the change was +3.8%.
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 $169. Alabama averages $185 a month, against a U.S. average of $155.