What drives electric bills in Alabama
Residential electricity in Alabama averaged 16.5¢ per kWh in January–July 2026, up 3.6% from 16.0¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 16.4¢. The typical home here used 1,143 kWh a month in 2024, 32% more than the U.S. average, so how much power you use matters as much as the price.
- Hot, humid summers. Air conditioning runs from late spring to early fall, and it is the biggest part of most summer bills.
- All-electric homes. Many homes use heat pumps or electric furnaces, so winter cold snaps also bring high bills.
- Fuel and rate adjustments. Alabama Power adjusts its rates through a yearly review rather than full rate cases, and fuel costs are passed through on the bill, so prices can change at the start of a year.
Who supplies your power
Alabama Power serves most of the state. Northern Alabama gets power from the Tennessee Valley Authority (TVA) through local utilities such as Huntsville Utilities, and rural co-ops serve many other areas.
Ways to pay less in Alabama
- Have your heat pump or A/C serviced once a year and replace filters monthly in summer. A tune-up and clean coils can lower cooling costs noticeably.
- Alabama Power and TVA’s EnergyRight program both offer home energy checkups and rebates on heat pumps and smart thermostats.
For example, a 1,500 W space heater running 8 hours a day costs about $60 a month at Alabama prices. Check what your appliances cost to run in Alabama.
Help paying your bill in Alabama
- LIHEAP: Alabama’s program helps with heating and cooling bills through community action agencies.
- Project SHARE: an Alabama Power program, run with the Salvation Army, that helps elderly and disabled customers pay energy bills.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Alabama?
A typical 7 kW rooftop system in Alabama produces roughly 9,100 kWh a year, about 66% of what an average home here uses. At the state’s average price of 16.5¢, that power is worth about $1,505 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Alabama compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Alabama | 16.5¢ | 1,143 | $189 |
| Tennessee | 13.9¢ | 1,154 | $160 |
| Mississippi | 15.2¢ | 1,156 | $176 |
| Florida | 15.3¢ | 1,104 | $169 |
| Georgia | 15.4¢ | 1,074 | $165 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.