What is a no deposit electricity plan?

No-deposit electricity plans are a popular option for customers who want to manage their energy costs. These plans allow you to avoid the typical credit check required by electricity companies and pay for your electricity up front.

With the Choose Energy marketplace, you can explore your options for no-deposit electricity plans. We’ll run a soft credit check and help you find the providers that offer prepaid plans so you won’t hurt your credit score or tie up valuable cash in a deposit.

To get started comparing no-deposit light companies and energy plans near you, enter your ZIP code.

Choose Energy is here to help if you’re looking for no-deposit plans, same-day prepaid electricity, and cheap rates. We work with trusted energy providers in deregulated states across the nation to help you find a plan that works for you. 

Many residential electricity suppliers offer prepaid lights and same-day service. For example, Payless Power provides a zero-deposit electricity plan option for customers who don’t have great credit scores. Our energy experts can also help you find no-deposit business energy plans for your company or small business, even if you’re just getting started on building your business’s credit profile.

Some energy deals don’t deliver what they promise when you search other sites for cheap light companies. Providers may offer promotional electricity rates when you sign up, but the plan may not be the best long-term option for you. You may also have to put down a large deposit before starting your service, which can make it confusing when you’re looking to select a provider or switch plans. 

If you’re searching for a different electricity option, consider a no-deposit plan. On the Choose Energy marketplace, you can choose from numerous plan options that even include green energy from wind and solar energy sources. Enter your ZIP code to find cheap no-deposit energy plans available in your area.

In 2021, Texas issued an eviction moratorium in response to COVID-19. The Texas Eviction Diversion Program expired in all counties on January 1, 2022, according to The Texas State Law Library. Customers who are now forced to move may have to find a new electricity plan quickly.

Texas residents in need of a no-deposit light company have options. No-deposit electricity plans in Texas are available and do not require a credit check. If you are interested in a no-deposit energy plan in Texas, enter your ZIP code to explore your options.

Choose Energy provides an independent, unaffiliated marketplace to help you find a reliable electricity provider and an affordable no-deposit energy plan. Rates you find on the Choose Energy marketplace are all-inclusive, which means the average price shown includes Transmission and Distribution Utility (TDU) charges and base charges. We only work with trusted energy providers in deregulated areas, including Texas, Illinois, Massachusetts, Delaware, Connecticut, and other states.

Be careful when searching for no-deposit energy deals. Other sites may offer promotional rates when you sign up, but the plan may not be the best long-term option for your energy needs. The price may also include hidden fees, leading to more expensive bills later. 

If you’re interested in finding a cheap light company or a reliable no-deposit electricity plan, enter your ZIP code to explore the options in your area.

When you apply for a new electricity plan, your energy provider will typically run a credit check to ensure you meet its requirements. You might be charged a deposit if your credit score falls below a provider’s threshold. To help you check your eligibility before a provider runs a hard credit check on you, Choose Energy runs a soft, universal credit check. Here’s what this means:

• It’s a soft credit check, so it will not affect your credit score.
• Our universal credit check runs your credit for all of our partners at once, so we only need to check your credit a single time. From there, we can identify which energy providers will require a deposit and which ones won’t.
• You can filter for “all credit approved” and “prepaid” options on the Choose Energy marketplace. This helps you narrow down all the available plans in your area to know which ones will not require a deposit.

One of the most common types of no-deposit electricity plans is a prepaid plan. With this type of energy plan, customers pay upfront for their monthly service, and no deposit is required. Same-day electricity connection ensures that you only pay for the energy that you use. 

It’s important to note that same-day prepaid electricity rates can be higher than rates for standard plans. Electricity rates can also vary based on where you live. This is especially important in areas such as Texas, where TDU charges can differ based on the local utility company. Make sure to thoroughly research your options before signing up for a plan. 

To help you manage your costs, you will receive regular updates about your electricity usage throughout the month. If your energy usage approaches the amount you have paid for, you will receive a notice to add more funds to your account.

If you are interested in finding a no-deposit electricity plan in your area, enter your ZIP code. We’ll show you all of the available options, and you can filter based on your preferences. Choose Energy will let you know whether a deposit is required and show you all of your options if you don’t want to pay one. Once you’ve found a plan, you can sign up online.

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