What Is a No-Deposit Electricity Plan?

Choose Energy can help you find light companies with no deposit requirements, same-day prepaid electricity plans, and cheap home energy rates. We work with trusted energy providers in deregulated states to make finding a competitive no-deposit electricity plan easy.

Many affordable electricity companies offer prepaid and same-day electricity plans, both for residential and business energy customers. For example, Payless Power offers no-deposit electricity plans to energy customers on our marketplace.

Make sure the provider you choose offers a no-deposit electricity plan with favorable terms that match your needs. Some light companies offer promotional electricity rates when you sign up but may increase the rates in the future. You should always thoroughly review a plan’s Electricity Facts Label (EFL) and understand the terms before signing up.

Choose Energy is an independent, unaffiliated marketplace helping you find reliable light companies and affordable no-deposit energy plans. We work with trusted energy providers in deregulated areas, including regions in Texas, Illinois, Massachusetts, Delaware, Connecticut, and other states.

On the Choose Energy marketplace, you can sort through numerous plan options from light companies like Payless Power. Enter your ZIP code on this page to find cheap month-to-month electricity plans with no deposit requirements in your area.

Prepaid plans are one of the most common types of no-deposit electricity plans. With prepaid energy plans, customers pay for their electricity in advance instead of putting down a security deposit. By avoiding the deposit, you ensure that you only pay for the energy 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 true in states like Texas, where Transmission and Distribution Utility (TDU) charges can differ depending on the local utility company. The available rates on the Choose Energy marketplace are all-inclusive, which means the average price shown includes TDU and base charges. Make sure to thoroughly research your options before signing up for a plan.

Prepaid electricity plans with Choose Energy

When you enter your ZIP code on the Choose Energy marketplace, you’ll find a variety of plan options available in your area. You can narrow the options down to only prepaid energy plans if you filter for all credit approved plans. Here is a brief overview of some of the current prepaid energy plans available on the Choose Energy marketplace.

Rates listed are accurate at the time of writing. Enter your ZIP code to check current rates in your area.

Signing up for a prepaid energy plan is one way to avoid any deposit fees that come with other plan types. You could also avoid paying a deposit for an energy plan if:

• You are a former customer with a solid two-year payment history with the provider
• You pay your energy bills on time
• You are not delinquent on your electric account
• You can provide proof of reliability from another energy provider, utility company, or landlord
• You have a high credit score

The Choose Energy marketplace is a one-stop shop to explore your options and sign up for no-deposit electricity plans. We’ll run a soft credit check, which won’t affect your credit score, to help you find cheap energy companies offering prepaid plans.

Energy companies set credit requirements to determine whether you must pay a deposit before receiving service. 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 have to pay a deposit if your credit score falls below the provider’s threshold. Choose Energy runs a soft, universal credit check to help you check your eligibility for the plans on our marketplace.

Here’s what this means:

• This soft credit check 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 match only those from light companies with no deposit requirement.

Paying upfront for energy with a prepaid energy plan works a little differently than other plans. With standard energy plans, your provider bills you for your energy usage each month. With a prepaid electricity plan, you add funds to your account in advance. You will receive regular monthly updates about your electricity usage to help you manage your costs. If your balance runs low, you will receive a notice to add to your account to avoid interruption to your service.

Enter your ZIP code to explore no-deposit electricity plans in your area. We’ll show you available options, and you can filter your results to browse light companies with no-deposit plans. Choose Energy allows you to access each plan’s details through the EFL to let you know if a plan requires a deposit or has any hidden fees. Once you’ve decided on a plan, you can sign up online on Choose Energy or over the phone in minutes.

What are the pros and cons to no-deposit electricity plans?

No-deposit and prepaid energy options offer more flexibility and ensure you’re only paying for the energy you consume. However, providers may charge higher rates for no-deposit plans. Review a plan’s EFL before signing up to ensure you understand the terms and that the details work for your energy needs.

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

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

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 that allow you to pay for your energy upfront instead of paying a deposit.

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

No-deposit energy plans do not typically require a contract. Many no-deposit plans are month-to-month and don’t charge an early termination fee, so you can switch to another plan at any time without penalty.