Alabama electricity and natural gas rates
Electricity
16.77¢
per kWh
Natural gas
$2.18
per therm
Residential sector, US Energy Information Administration, 2026-05. Updated monthly.
How Alabama compares
At 16.77¢ per kWh, Alabama is below the national average of 19.41¢, making it the 28th cheapest of the 51 states we track.
What a typical Alabama household uses
Electricity a month
1,129 kWh
Bill a month
$185
Households in Alabama use 31% more electricity than the national average and pay 24% more than average. Cheap power absorbs most of that: the meter turns faster here, but at 16.77¢ each unit costs less than it does nationally. Cooling explains most of it: Alabama runs about 2,000 cooling degree days a year against 2,600 heating ones, so summer, not winter, sets the bill.
Averaged over twelve months across 2,449,797 residential accounts in Alabama. Source: EIA.
What this means for heating
Alabama sees around 45 freezing nights a year. Whether a heat pump beats a furnace here depends on the gap between those two prices above — not on the equipment.
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