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.