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Cost to run an electric water heater in Alabama (July 2026 rates)
At 16.40¢ per kilowatt-hour — Alabama's average residential price in July 2026 — running an electric water heater costs $574 a year. That is 10% less than the national average of $641. Alabama's residential rate is up 3.0% from July 2025, which moves this appliance from $558 to $574 a year.
- Per day
- $1.57
- Per month
- $47.83
- Per year
- $574
Assumption: 3,500 kWh a year. A 50-gallon resistance tank for a household of three or four. This is typically the largest or second-largest electric load in a home without electric heat. Use the calculator to swap in the numbers from your own model.
Related calculators: work out whether a heat-pump water heater pays back.
How Alabama compares
Alabama pays 16.40¢/kWh, the 24th most expensive residential electricity of the 51 U.S. jurisdictions EIA reports. For this appliance that works out to $66.85 less a year than the typical U.S. household pays for the same use. Running the same electric water heater costs $445 a year in Louisiana and $1,680 in Hawaii, so where you live changes this bill by $1,235 a year.
| State | Rate | Per month | Per year |
|---|---|---|---|
| New Mexico | 16.09¢ | $46.93 | $563 |
| Georgia | 16.27¢ | $47.45 | $569 |
| Alabama | 16.40¢ | $47.83 | $574 |
| Indiana | 16.73¢ | $48.80 | $586 |
| Colorado | 17.00¢ | $49.58 | $595 |
States ranked by average residential price, cheapest first. See all 51 states for an electric water heater.
What else costs about the same in Alabama
Cutting the number down
- A heat-pump water heater does the same job for roughly a third of the electricity, which is why it usually pays back faster than any other upgrade in the house.
- Dropping the setpoint from 140 F to 120 F cuts standby losses and scalding risk at once.
- An insulating blanket on an older tank pays for itself in a season; check the manufacturer's guidance first.
Questions
- How much does an electric water heater cost per month in Alabama?
- About $47.83 a month, assuming 3,500 kWh a year at 16.40¢/kWh.
- How many kilowatt-hours does an electric water heater use?
- Roughly 3,500 kWh a year under these assumptions.
- Is that expensive compared with other states?
- Alabama has the 24th most expensive average residential rate in the country, so this appliance costs less here than the U.S. average of $641 a year.