No-Deposit Electricity Rates and Plans

Many electricity providers run a credit check, and, depending on the result, may require customers to pay a deposit to begin service. As an alternative option, some providers offer no-deposit energy plans that let customers skip paying the upfront fee. The most popular type of no-deposit energy option in Texas is the prepaid electricity plan, which lets you skip the deposit and instead pay for electricity upfront.

You may be able to skip paying a deposit in Texas if you meet at least one of the following qualifications:

• You have a high credit score: Every energy provider sets its own credit threshold. If your credit score meets the required threshold, you can begin service without paying the deposit.
• You have a history of on-time payments: If you are a former customer and have a documented history of paying your energy bills on time, your provider may waive the deposit.
• You meet specific requirements set by the provider: Some providers allow customers to skip the deposit if they are over 65 years old, have served in the military, or are victims of domestic violence. These requirements vary by provider.
• You enroll in a prepaid energy plan: Prepaid electricity options do not require a credit check and let you pay for energy in advance.

Prepaid energy plans allow you to pay for your electricity in advance. Under this type of plan, you preload your account with funds to begin service. Once your light plan starts, you can reload your account whenever your balance runs low. Your energy provider will update you regularly about your account usage to help you manage your energy costs and send an alert if the funds in your account begin to run low.

Choose Energy is a free marketplace that can help you find no-deposit electricity plans from top energy providers in Texas. Here’s how the shopping process works with Choose Energy:

1. Enter your ZIP code. We’ll show you a list of all the energy plans from top energy companies in Texas.
2. Filter for “all credit approved” plans. This will narrow your options to no-deposit and prepaid electricity plans available in your area.
3. Choose your energy plan and sign up in minutes. Once you’re confident in your choice, we’ll guide you through the enrollment process online or over the phone. Either method is simple and only takes a few minutes.

In Texas, the most popular no-deposit energy company is Payless Power. Our marketplace offers two no-deposit energy plans from Payless Power lasting either six or 12 months. The features for these plans include:

• No credit requirements
• No deposits
• 26% renewable energy content
• $99 early termination fee
• 30-day satisfaction guarantee

Payless Power will also set up your electricity the same day you sign up for a plan. All you need to do is make sure you have a smart meter and sign up before 5 p.m. CST. This service is not offered on Sundays.

A no-deposit plan can be convenient and enticing, but the terms of the plan may not be the right choice for everyone. No-deposit and prepaid plans often charge higher electricity rates than many fixed-rate plans. A no-deposit plan might be best for you if:

• You need same-day service
• You don’t want a long-term contract
• You have a tight budget
• Your credit score is lower than most providers’ credit thresholds

Before signing up for a no-deposit energy plan, we recommend comparing the rates and terms of a few fixed-rate plans. These types of plans may require a deposit but are normally more predictable and stable. If you decide that a no-deposit or prepaid plan is best for your home, we can help you enroll in a matter of minutes.

Are there any cons to no-deposit plans?

The main downside to no-deposit plans is that they typically charge a higher rate for electricity than fixed-rate options. If you value finding the cheapest plan for your home or business, it may be worth paying the deposit for a fixed-rate plan to secure a lower rate. Enter your ZIP code on our free marketplace to explore today’s cheapest options in your area.

Are there no-deposit plans for low-income households?

Some light companies offer no-deposit plans to households within a certain income threshold. You may need to provide documentation proving you meet this requirement before enrolling. Other common deposit exemptions include customers over the age of 65, members of the military, and customers with extenuating medical conditions.

What is the difference between a no-deposit plan and a prepaid electricity plan?

No-deposit electricity is a category of energy plans similar to fixed-rate and variable-rate plans. There are a few ways an energy plan can be considered “no-deposit,” including if your credit score exempts you from paying a deposit. Prepaid electricity plans are a common type of no-deposit option where you pay for a portion of your energy upfront instead of paying a deposit.

Will I need to sign a contract for a no-deposit plan?

You must sign a contract to lock in your electricity rate for Payless Power’s plans on Choose Energy. Our marketplace offers two options: a six- or 12-month plan. You should always review a plan’s Electricity Facts Label (EFL) to understand the details before signing up.

Having credit that’s less than perfect can mean you’re required to pay a deposit to sign up for electricity service. But Choose Energy’s marketplace includes cheap no-deposit plans for those whose credit score has room for improvement. 

Choose Energy is here to help if you’re looking for a great light company, no deposit plan, and cheap rates. We work with trusted energy providers in deregulated states across the nation. Many residential electricity suppliers offer no-deposit plans. For example, Payless Power provides a zero-deposit electricity plan option for customers who lack great credit scores.

Be careful if you search other sites for a cheap light company. Some energy deals aren’t what they seem. Providers may offer promotional rates for signing up, but the plan itself may not be the best long-term option for you. If you’re searching for a truly cheaper option, we suggest considering a no-deposit plan.

The bottom line: We always have no-deposit electricity plans available. Interested in learning more? Enter your ZIP code above to find cheap no-deposit energy plans available in your area.

To find the right plan for you, Choose Energy runs a soft credit check. This is to determine whether you’ll have to provide a deposit to get service – and how large that deposit will be. Energy customers with good credit get more favorable terms. Each energy provider we work with has its own standards for deposits.

Keep this in mind, too. Deposits are just that. Your deposit is refundable and should be returned with interest – if your account is in good standing – when you end your contract. In some instances, the deposit may be refunded once you’ve established an on-time payment record.

No question, credit checks can be troublesome. But there are three reasons you shouldn’t worry when Choose Energy asks to run a soft credit check before signing you up for service:

1. It’s a soft check so it won’t hurt your credit score.
2. We call our check a Universal Credit Check, which means we check for all partners at once. We identify at once the retail electricity providers that will require a deposit – and those that won’t.
3. No deposit electricity plans: Providers we work with have no-deposit options. We’ll identify them and help you get a plan that fits your energy needs.

At least half the residential electricity customers in deregulated states must pay a deposit before starting a plan. But don’t worry – you have options for a light company with no deposit.

One way to avoid paying a deposit is to sign up for pre-paid plans. With these plans, customers pay a monthly fee upfront for service – but not a deposit. That payment goes toward the customer’s bill for that month. The customer then receives regular updates about his or her electricity usage. If the usage approaches the pre-paid amount, the customer must pay in advance for more electricity.

All that said, you should know this. Rates for pre-paid plans can be a bit higher than those for standard plans.

Electricity rates can differ by where you live. This is especially important in Texas, where transmission charges can vary by the utility company that delivers electricity to your home. (It also repairs poles and lines in case of outages.)

But that doesn’t mean you should conduct a web search for “no-deposit electricity plans near me” or “no-deposit electric rates in my area.” You’ll get some results, but you’ll have to look at dozens of pages. If you enter your ZIP on this page, we’ll show you plans from trusted providers. Simply sort through them and find the one you want. 

So, what’s the next step? Enter your ZIP code above to see available plans. Once you settle on a plan, Choose Energy will tell you whether a deposit is required and outline your options if you don’t want to pay one.

updated: 3/4/2021