Electricity rates · July 2026
Electricity rates in Alabama
Homes in Alabama paid an average of 16.40¢ per kWh in July 2026 — below the U.S. average of 18.31¢ and up 3.0% from a year earlier. It ranks #24 of 51 (50 states and D.C.), from most to least expensive.
- Residential price per kWh
- 16.40¢
- U.S. 18.31¢
- Commercial price per kWh
- 14.83¢
- U.S. 14.53¢
- Industrial price per kWh
- 8.42¢
- U.S. 9.77¢
- All sectors price per kWh
- 13.32¢
- U.S. 14.99¢
What electricity costs per month in Alabama
Cost at the state average residential price, which includes taxes and fees. Your utility's rates may differ. Try your own kWh.
| Monthly use | Alabama | U.S. average |
|---|---|---|
| 500 kWh | $82 | $92 |
| 900 kWh | $148 | $165 |
| 1,200 kWh | $197 | $220 |
| 1,500 kWh | $246 | $275 |
Alabama vs. the East South Central region
Residential price per kWh, July 2026, and change from a year earlier.
| Area | Price | vs. year ago |
|---|---|---|
| Alabama | 16.40¢ | +3.0% |
| East South Central average | 14.61¢ | +4.4% |
| Mississippi | 14.54¢ | +7.1% |
| Kentucky | 13.81¢ | +5.2% |
| Tennessee | 13.71¢ | +3.8% |
Could solar cut your Alabama bill?
At 16.40¢/kWh, our example 7 kW system pays back in 12.6 years and saves $1,569 in year one.
Common questions
What is the average electricity rate in Alabama?
16.40¢ per kWh for residential customers in July 2026, according to the U.S. Energy Information Administration. That is below the national average of 18.31¢. Your own rate depends on your utility and plan.
How much does 1,000 kWh of electricity cost in Alabama?
At the state average of 16.40¢/kWh, 1,000 kWh of energy costs about $164. That average already includes taxes and fees spread across all kWh sold; your own cost depends on your utility's rates and how much you use.
Are electricity prices in Alabama going up?
The July 2026 average was up 3.0% from the same month a year earlier (15.93¢). Recent EIA months are preliminary and can be revised.
Is solar worth it in Alabama at these prices?
For our example 7 kW system on a 10,500 kWh/yr home with full net metering, payback in Alabama is 12.6 years at today's average price. It depends heavily on your rate, roof and how your utility credits exports — see the state solar page for details.
Electricity rates in other states
Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A (average price of electricity to ultimate customers), July 2026. Recent months are preliminary. Monthly cost examples multiply the average price by usage; EIA derives the average by dividing utility revenue (including taxes and fees) by kWh sold.
