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Electricity rates in Alabama

Homes in Alabama pay an average of 16.40¢ per kWh, 11% below the national average of 18.34¢. Enter your bill to see where you stand.

Alabama average: 16.40¢/kWh
Avg monthly bill: $182
Past 12 months: +2.1%

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How Alabama electricity prices compare

Alabama ranks 28th cheapest of 51 (50 states plus D.C.) for residential electricity. At 16.40¢/kWh, it sits 11% below the national average of 18.34¢, and prices are up 2.1% over the past year.

The typical Alabama household uses about 1,110 kWh a month and pays around $182. Among Southeast states, Tennessee, Kentucky and North Carolina have lower rates.

Rate: 16.40¢
vs U.S.: −11%
Avg usage: 1,110 kWh
National rank: 28th

To find your own rate, divide your total bill by the kWh you used. If you paid $182 for 1,110 kWh, you're right at the Alabama average.

Can you choose your electricity provider in Alabama?

No. Alabama is a regulated market: Alabama Power and local TVA distributors such as Huntsville Utilities both deliver and sell your power, and rates are set by the state utility commission. You can't switch supplier, but you can change how you pay, for example with a time-of-use plan, budget billing or efficiency upgrades.

Main electric utilities in Alabama

Most Alabama homes are served by Alabama Power and local TVA distributors such as Huntsville Utilities. Your utility's name and account number are near the top of your bill.

How to lower your electric bill in Alabama

Ask your utility about time-of-use pricing. Shifting laundry, dishwashing and EV charging to off-peak hours can cut 5–15%.
Tackle heating and cooling first. A smart thermostat and sealed air leaks usually save more than any other single change.
Check for assistance programs. LIHEAP and utility discount programs can lower bills for eligible households.

Alabama electricity FAQ

What is the average electricity rate in Alabama?

The average residential rate in Alabama is 16.40 cents per kWh as of September 2026, 11% below the national average of 18.34¢.

What is the average electric bill in Alabama?

About $182 per month, based on average use of roughly 1,110 kWh.

Can I switch electricity providers in Alabama?

No. Alabama is regulated, so your utility sells and delivers your power.

Who are the main electric utilities in Alabama?

The main utilities in Alabama are Alabama Power and local TVA distributors such as Huntsville Utilities.

Compare other Southeast states

Averages are EIA residential revenue divided by kWh sold, September 2026. Your rate depends on your utility, plan and season. See all 50 states.