Alabama Electricity Rates 2026 — Cost per kWh & Savings
The average electricity rate in Alabama (AL) is $0.1283/kWh, ranking #12 among US states. The average monthly bill is $150 for 1169 kWh of usage.
Calculate Your Alabama Electric Bill
Electricity Savings Tips for Alabama
Alabama has relatively low electricity rates due to a mix of natural gas, coal, and nuclear generation. However, high usage from summer AC drives bills above the national average. Consider a smart thermostat — reducing AC runtime by 2 hours/day saves $15-25/month.
Primary Utility: Alabama Power
Alabama has a regulated electricity market served primarily by Alabama Power. Rates are set by the state public utility commission and cannot be changed by shopping for providers. Focus on reducing usage and investing in efficiency improvements to lower your bill.
Solar Energy in Alabama
Alabama receives an average of 4.5 peak sun hours per day. While not the sunniest state, solar panels still produce meaningful energy here. At $0.13/kWh, a solar system that produces 7884 kWh/year saves approximately $1012/year. With the 30% federal tax credit, typical payback is 8-12 years.