Independent rate reference - not affiliated with any utility or energy supplier. Data: EIA Electric Power Monthly, May 2026.Full disclaimer
ElectricityRatePerKWh

Electricity Rate in Alabama (2026): 16.77c/kWh Average

The EIA residential electricity price in Alabama is 16.77 cents per kWh as of May 2026, 1.67c below the US average of 18.44c/kWh. The Alabama commercial rate is 14.51c/kWh and the industrial rate is 7.89c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
16.77¢
per kWh
vs US Avg
-9%
1.67c below
Avg Monthly Bill
$184
1144 kWh
Provider Choice
No
Regulated monopoly

Alabama Electricity Rate: What You Need to Know

Alabama electricity averages 16.77 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 1.67c below the US average of 18.44c/kWh. The average monthly bill for Alabama households is $184 based on typical usage of 1144 kWh.

Generation mix: Natural gas 50%, nuclear 20%, coal 15%, renewables 15%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: Alabama rates rose 3.8% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

Alabama Power operates as the regulated utility in Alabama. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.

Your Alabama Electricity Bill Components

Energy charge (1144 kWh x 16.77c)$191.85
Fixed customer charge (estimated)~$10.00
Estimated monthly total$201.85
Alabama Rate by Sector - May 2026
Residential (US 18.44c)16.77c
Commercial (US 13.54c)14.51c
Industrial (US 8.71c)7.89c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
Alabama Power
Adjacent States
Georgia15.84c
Florida15.17c
Mississippi16.16c
Tennessee14.47c
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Alabama Electricity: Frequently Asked Questions

What is the electricity rate in Alabama in 2026?+
The average residential electricity rate in Alabama is 16.77 cents per kWh as of May 2026, according to the EIA Electric Power Monthly. This is 1.67c below the US average of 18.44c/kWh (-9%). The average monthly electricity bill in Alabama is approximately $184 based on 1144 kWh typical monthly usage.
What is the commercial electricity rate in Alabama?+
The average commercial electricity rate in Alabama is 14.51 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 13.54c/kWh. Commercial rates apply to businesses, offices, schools, and retail. They are usually lower per kWh than residential rates, but a commercial bill can still be much larger because of higher volume and demand charges.
What is the industrial electricity rate in Alabama?+
The average industrial electricity rate in Alabama is 7.89 cents per kWh as of May 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 8.71c/kWh. Industrial customers such as factories, manufacturers, and large facilities pay the lowest per-kWh price of the three EIA sectors because they buy power at high volume, often at higher voltage, under demand-based rate structures.
Can I switch electricity providers in Alabama?+
No - Alabama operates a regulated electricity market. Alabama Power serves as the regulated monopoly utility. Customers cannot switch electricity generation suppliers. Options for reducing bills include time-of-use rate optimization (where available), energy efficiency upgrades, and solar installation.
What is the average monthly electricity bill in Alabama?+
The average Alabama household uses approximately 1144 kWh per month. At 16.77c/kWh plus approximately $10 in fixed charges, the average monthly bill is $184. This varies by season (higher in summer for cooling-dominant states like Alabama, higher in winter for heating-dominant states).
What is the primary electricity source in Alabama?+
Alabama's generation mix is primarily Natural gas 50%, nuclear 20%, coal 15%, renewables 15%. This fuel mix is a key factor in the state's electricity rate - states relying on hydro or nuclear typically have lower rates, while states heavily dependent on natural gas or petroleum (like Hawaii) face higher costs.
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