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Alabama (AL) electricity and natural gas rates

Electricity

16.40¢

per kWh

Natural gas

$2.43

per therm

Gas and electricity in the same unit

A therm is 29.3 kilowatt hours of energy, so Alabama's gas works out at 8.28¢ per kWh against 16.40¢ for electricity.

That compares the energy you buy, not the heat you get. A furnace throws away a fifth of every therm up the flue, while a heat pump delivers two to three times the heat in a kilowatt hour — so the cheaper unit here is not automatically the cheaper way to heat a house.

Residential sector, US Energy Information Administration, 2026-07. Updated monthly.

How Alabama compares

At 16.40¢ per kWh, Alabama is below the national average of 19.26¢, making it the 28th cheapest of the 51 states we track.

What a typical Alabama household uses

Electricity a month

1,125 kWh

Bill a month

$185

Households in Alabama use 31% more electricity than the national average and pay 23% more than average. Cheap power absorbs most of that: the meter turns faster here, but at 16.40¢ 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.

More on this: the average electric bill in Alabama, including how far it swings between seasons.

Averaged over twelve months across 2,455,894 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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