Alabama EV vs gas · Gas October 12, 2026 · Electricity rates 2025

Is an EV cheaper than gas in Birmingham?

Yes, by a lot. On Alabama Power's average home rate, charging an EV costs the same per mile as gas at $1.45 a gallon. Gas in the Birmingham metro averaged $3.98 on October 12, 2026, so 1,000 miles a month costs about $54 to charge versus $147 in gas: roughly $94 a month back.

Where Birmingham gets its power

What you pay for power sets what charging costs. Here are the numbers for Birmingham.

Alabama Power

Serves Birmingham and most of Alabama

Average home rate 17.9 cents per kWh (2025). Charging costs the same per mile as gas at $1.45 a gallon: about $54 for 1,000 miles versus $147 in gas.

Some outlying areas are served by an electric co-op instead.

Why this holds up when gas spikes

Gas prices jumped in 2026 when the war with Iran disrupted oil shipping through the Strait of Hormuz. Home electricity is priced by utilities under state regulators and moves far more slowly, so the gap tends to widen when gas spikes. For a 27 mpg car to cost less per mile than charging at home in Birmingham, gas would have to fall below $1.45 a gallon.

Why an EV opts you out of gas spikes · Is an EV cheaper than gas right now? Every state

Alabama rules that apply in Birmingham

Alabama charges EV owners an extra $203/yr at registration ($103/yr for plug-in hybrids). Even after that, charging on Alabama Power leaves about $921 a year in your favor at 12,000 miles.

Alabama has no EV purchase rebate. Alabama Power pays $500 toward a home Level 2 charger and discounts night charging. Budget for the $203/yr EV fee too.

Alabama EV incentives · EV fees by state

How we calculated it

We assume 1,000 miles a month, a typical new EV that uses 30 kWh per 100 miles, a 27 mpg gas car, and home charging at each utility's average residential rate, which includes its fixed monthly charges. An overnight or EV rate is often cheaper than that average, and public fast charging costs much more. Treat this as the honest average, not your bill.

Sources: EIA Form 861, 2025 (each utility’s residential revenue divided by residential sales), AAA metro gas price averages (regular unleaded), October 12, 2026

Now run it with your own numbers

Use the savings calculator or see which EVs fit how you drive.

Questions people ask

Is an EV cheaper than gas in Birmingham?

Yes. Charging at home on Alabama Power (17.9 cents per kWh, 2025) costs about $54 per 1,000 miles. The same miles in a 27 mpg car cost about $147 at the $3.98 Birmingham gas average on October 12, 2026. Alabama's $203/yr EV fee still leaves about $921 a year in your favor.

How low would gas have to go to beat an EV in Birmingham?

About $1.45 a gallon. That is what a 27 mpg car would need to pay to match the cost per mile of charging at home on Alabama Power.

How much does it cost to charge an EV in Birmingham?

At home, about $54 per 1,000 miles on Alabama Power (17.9 cents per kWh), for a typical EV that uses 30 kWh per 100 miles. Public fast charging costs much more per kWh than home charging, so these numbers assume you charge at home most of the time.

Are there EV rebates in Birmingham?

Alabama has no state EV purchase rebate right now, but utilities here add their own: Alabama Power: EV night-charging discount (rate discount + up to $100); Alabama Power: home L2 charger rebate ($500). Check the utility's page before you buy; programs fill up and change.

Other cities

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