No-deposit electricity plans

When signing up for a new electricity provider, it’s common for many Texas light companies to require an upfront deposit. However, for those who don’t want to pay a deposit, consider no-deposit electric plans that allow you to skip the payment.

Providers typically run a soft credit check to determine if you meet their credit threshold. If you are below the credit limit, the provider usually requires a deposit that is held for the duration of your contract. No-deposit light plans are a convenient solution for customers who do not want to undergo a credit check.

Choose Texas Power partners with top energy providers across Texas to help you compare rates and plans in your area. Call the number on your screen to speak with an energy expert who can help match you with the right plan.

How to avoid a deposit

Electricity bill deposits can cost up to one-sixth of your annual electric bill or two months’ worth of service. For many Texas customers, that amount could be $350 or more. No-deposit light companies can help you avoid spending hundreds of dollars on an electricity deposit before your service even begins.

To qualify a customer for a no-deposit plan, electricity companies consider: 

• Past customers: If you’ve been a customer of an electricity rep within the past two years, you could avoid a deposit with the same company.
• No delinquencies: You can typically only avoid deposits if there are no delinquent notes on previous electric accounts.
• Payment history: With a satisfactory payment history, you may be able to avoid paying a deposit.
• Prepaid plans: You can avoid a deposit when you prepay for electricity with some no-deposit light companies.

Types of no-deposit light plans

If you’re looking for a light company with no deposit requirements, you’ll often find two options: prepaid or no-deposit plans for high credit scores.

Prepaid plans

The most common type of no-deposit electricity plan is a prepaid lights plan. With prepaid plans, you pay for your electricity beforehand. Unlike a deposit, which doesn’t cover your electricity usage, payments on a prepaid plan go directly toward your electricity costs. With prepaid energy plans, you’ll receive notifications about your energy usage. When your account runs low, you can add more funds to keep the lights on.

No-deposit plans for high credit scores

Many electric companies offer no-deposit plans to customers who meet their credit score threshold. These plans require a soft credit check, and you can begin service without a deposit if you qualify. A soft credit check does not affect your credit score.

Curious if you qualify for a light company with no-deposit plans? Enter your ZIP code on Choose Texas Power to compare no-deposit electricity plans and learn whether you qualify.

Low-deposit plans

Low-deposit plans are an alternative for those who may not qualify for traditional no-deposit plans but still want to minimize upfront costs. These plans require a smaller initial deposit than standard ones, making them a more accessible option for customers with varying credit histories. While low-deposit plans may involve a modest upfront payment, they can still provide cost-effective electricity solutions.

Is a no-deposit plan right for me?

Before signing up for a no-deposit plan in Texas, consider the following benefits and drawbacks to determine if it’s a good fit for you.

Pros of no-deposit plans

• No deposits: You don’t have to tie up cash in a security deposit. The money you pay on a no-deposit plan goes directly toward your home’s electric service costs.
• No credit checks: Prepaid no-deposit plans don’t require credit checks, making them a good option for customers with low credit scores or those who want to avoid a credit check altogether.
• Bill control: Under a prepaid plan, you have control over how much you spend on electricity bills. Pay-as-you-go plans are ideal for customers who wish to control electricity usage and expenses.

Cons of no-deposit plans

• Upfront costs: Although it’s not considered a deposit, you have to pay for a portion of your electricity upfront if you choose a prepaid plan. This requirement may not apply if you fall into a high credit bracket for a fixed-rate plan.
• Automatic shut-offs: Many no-deposit electricity plans are prepaid or require frequent monthly payments. If you use up the electricity you paid for, your service could automatically be disconnected until you add more money to your account.
• Higher rates: Some no-deposit plans have higher electricity rates than other plans. While choosing an electricity company for a no-deposit plan can be a good option for immediate service, it may cost more in the long run.

No-deposit light companies

Many Texas light companies, such as Payless Power, Acacia, BKV, Pogo, and others, specialize in no-deposit plans. The experts at Choose Texas Power recommend exploring Payless Power’s prepaid options. This Texas electricity company provides affordable and flexible prepaid plans to help customers avoid an upfront deposit.

Payless Power offers two flexible options for prepaid electricity: 

*Note: These rates are current for Houston, Texas, as of 12/12/24. Enter your ZIP code to find the exact rate for your location. 

No-deposit electricity plans FAQs

Does a no-deposit light plan require a credit check?

Payless Power does not run a credit check for its no-deposit light plans.

Do I have to sign a contract for a no-deposit plan?

It depends on which provider and plan you choose. Payless Power’s prepaid options require a contract to lock in your electricity rate for the duration of the contract. The contract includes an early termination fee of $99 if you cancel it early.

How quickly can I begin service under a no-deposit plan?

Many no-deposit providers offer same-day setup, especially if you have a smart meter, which most Texas homes do. Smart meters allow providers to set up your service remotely, removing the need for a technician to visit your home or business.

Can I transfer my no-deposit plan to a new address?

The first step is to check whether your no-deposit light company offers service where you’re moving. If it does, you’ll need to contact them ahead of time to arrange to move your service. If you’re moving outside the service area of your energy provider, you’ll need to switch energy plans.

How do I know if a no-deposit plan is right for me?

Our team of Texas energy experts specializes in matching customers with the right plan. Call the number on your screen to speak with our seasoned professionals, who can help answer your questions and match you with the best light plan.