Electricity Rates in Birmingham, AL

The average residential electricity rate in Birmingham is $0.13 per kilowatt-hour (kWh), which is 19% below the national average of $0.16/kWh. The average monthly electric bill for Birmingham homeowners is approximately $124.

With solar panels, Birmingham homeowners can reduce their electricity costs by approximately 78%, saving around $97 per month or $29,000 over 25 years. The 30% federal tax credit further reduces the upfront cost of going solar.

The major electric utilities serving the Birmingham area include Alabama Power, Tennessee Valley Authority, Huntsville Utilities. Rates vary between providers, so your exact cost depends on your utility and usage level.

Yes, electricity rates in Birmingham and across Alabama have been increasing, following national trends of 2-5% annual increases. This makes solar panels an increasingly attractive option since they lock in your energy costs for 25+ years.