EIA data through August 2026 · updated 2026-10-29

Heating costs in Alabama

The cheapest way to heat a home in Alabama at today's average prices is natural gas ($18.56 per million BTU of heat), then heat pump ($19.09). A heat pump costs 2.9% more to run than a gas furnace.

Propane$3.63/galOct 26, 2026 · +5.5% y/y

Natural gas$17.32/Mcfwinter 2025–26 avg. · Jul 2026: $25.16

Electricity16.3¢/kWhAugust 2026 · +0.4% y/y

Cheapest way to heat a home in Alabama

cost of the same amount of heat

Your home's heating need per winter: 50 million BTU

Heat source	Price used	Per million BTU of heat	Per winter
Natural gas cheapest	$17.32/Mcf · winter 2025–26 avg.	$18.56	$928
Heat pump	16.3¢/kWh ÷ COP 2.5	$19.09	$955
Propane	$3.63/gal · Oct 26, 2026	$44.08	$2,204
Electric resistance	16.3¢/kWh · winter 2025–26 avg.	$47.74	$2,387

How we compare: fuel price ÷ (energy content × efficiency). Assumptions — heating oil 138,500 BTU/gal at 85%, propane 91,500 BTU/gal at 90%, natural gas 1,037,000 BTU per Mcf at 90%, electric resistance 100%, heat pump seasonal COP 2.5 (lower in very cold weather). Gas and electricity use last winter's average price; oil and propane the latest weekly survey. Delivery fees, tank rental and fixed charges vary and are not included.

Propane in Alabama, winter by winter

2023–242024–252025–262026–27 (this winter)Weekly survey, Oct–Mar · hover a point for the exact price

U.S. average: $2.73/gal. Source: EIA State Heating Oil and Propane Program (residential, weekly).

Natural gas price in Alabama

Residential natural gas, $ per McfMonthly · summer prices per Mcf run higher because fixed charges are spread over less gas

Average price paid by homes, including delivery charges. Source: EIA Natural Gas Monthly.

Electricity in Alabama

Electric heat and heat pumps run on your utility's rate. See Alabama electricity rates by utility and ZIP code →

Questions

How much is propane in Alabama?

$3.63 per gallon for homes in the EIA survey of Oct 26, 2026 (+5.5% vs. a year earlier).

Is a heat pump cheaper than gas in Alabama?

Not at average prices: a heat pump (seasonal COP 2.5) costs $19.09 per million BTU of heat, 2.9% more than a 90% gas furnace at $18.56. A higher-efficiency heat pump or a lower electricity rate can change this.

What is the cheapest way to heat a home in Alabama?

At current average prices: natural gas $18.56, heat pump $19.09, propane $44.08, electric resistance $47.74 per million BTU of delivered heat (cheapest first).