Electricity Rates Comparison
Data from U.S. Energy Information Administration (EIA) · November 2025
| Metric | Alabama | Tennessee | National Avg |
|---|---|---|---|
| Residential Rate (¢/kWh) | 16.08¢ | 13.47¢ | 17.24¢ |
| Commercial Rate (¢/kWh) | 14.95¢ | 12.62¢ | — |
| Industrial Rate (¢/kWh) | 7.80¢ | 6.24¢ | — |
| Avg Monthly Bill | $183.83 | $155.38 | $152.02 |
| Avg Monthly Usage (kWh) | 1,143 | 1,154 | — |
| Market Type | regulated | regulated | — |
Tennessee has a lower residential electricity rate at 13.47¢/kWh compared to Alabama's 16.08¢/kWh — a difference of 2.61¢/kWh (19.4%).
The average monthly electric bill in Alabama is $183.83 (1143 kWh/month), while in Tennessee it is $155.38 (1154 kWh/month). The national average is $152.02.
Alabama has a regulated electricity market, while Tennessee has a regulated market.
The national average residential rate is 17.24¢/kWh. Alabama is below the national average at 16.08¢/kWh, and Tennessee is below the national average at 13.47¢/kWh.
Understanding Alabama Power's rate structure, available plans, and how to optimize your electricity costs.
Learn how Alabama Power's rate structure works, what each charge on your bill means, and how to find savings opportunities as an Alabama Power customer.
Why Tennessee has some of the lowest electricity rates in the nation thanks to TVA.
Compare electricity rates across Florida's major utilities and find the best rate plan for your home.