Alabama Electricity Rates (2026)
16.1¢/kWhstate average
6.9% below national averageUtilities in Alabama
Rate Outlook for Alabama
Alabama's average residential electricity rate is currently 16.1 cents/kWh. Under EIA's reference scenario, rates are projected to reach 19.0 cents/kWh by 2031 and 21.6 cents/kWh by 2036, a 34.2% change. Under the high oil price scenario, rates could reach 22.5 cents/kWh.
EIA projections for Alabama vs. actual observed rates
Projected residential electricity rates for Alabama (next 10 years)
| Year | Reference (¢/kWh) | High Price | Low Price |
|---|---|---|---|
| 2026 | 17.8 | 18.0 | 17.7 |
| 2027 | 17.2 | 17.4 | 17.2 |
| 2028 | 17.4 | 17.6 | 17.5 |
| 2029 | 17.9 | 18.0 | 18.0 |
| 2030 | 18.4 | 18.6 | 18.5 |
| 2031 | 19.0 | 19.3 | 19.3 |
| 2032 | 19.6 | 20.1 | 19.8 |
| 2033 | 20.4 | 20.9 | 20.5 |
| 2034 | 20.9 | 21.5 | 21.0 |
| 2035 | 21.4 | 22.0 | 21.3 |
| 2036 | 21.6 | 22.5 | 21.6 |
Data Sources: U.S. Energy Information Administration — Annual Energy Outlook (AEO2010, AEO2015, AEO2020, AEO2025) and Monthly Energy Review.
Methodology: State-level projections are derived by applying national rate trends from EIA's Annual Energy Outlook to Alabama's current observed rate. EIA does not publish state-level projections.
Freshness: This data is checked weekly against EIA's open data APIs. The Monthly Energy Review updates monthly with observed rates. The Annual Energy Outlook publishes new projections annually.