No-Deposit Electricity: Compare Light Companies & Plans
Explore no-deposit options on Choose Texas Power from top providers.

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What is an electricity plan deposit?

Most Texas light companies require an upfront deposit when you begin service, which may add an extra cost burden for some customers. However, some providers offer no-deposit electricity plans that allow you to skip this upfront fee.

When you sign up for service, electricity providers typically run a soft credit check. If you don’t meet their minimum credit requirement, they’ll often require a security deposit, held for at least 12 months. However, there are a few no-deposit electric companies in Texas that offer a way to skip the credit check and start service without an upfront deposit.

If you’re looking for a way to get energy service without the extra cost of a security deposit, Choose Texas Power can help. Enter your ZIP code to explore light companies with no deposit requirements.

How to qualify for a no-deposit electricity plan

Electricity bill deposits can cost up to two months’ worth of service — one-sixth of your annual electric bill. 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 service: If you’ve been a customer of an electricity provider 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: A satisfactory payment history may let you avoid paying a deposit.
  • Prepaid plans: You can avoid a deposit when you prepay for electricity with some no-deposit light companies.

No-deposit electricity plans

Payless Power - 12 Month - prepaid 12 months $0.201 / kWh
Payless Power - 6 Month - prepaid 6 months $0.202 / kWh

Please note: All rates above are accurate as of 4/24/2025, 6:00:21 PM CDT for ZIP Code 75001. Rates may have changed since this date/time. For the most up to date rates in your area, please enter your zip code above.

Types of no-deposit light plans

If you’re looking for light companies with no deposit requirements, you’ll often find two options: prepaid plans or no-deposit plans for high credit scores. You may also find some low-deposit plans available.

Prepaid plans

The most common type of no-deposit electricity plan is a prepaid plan. With prepaid plans, you pay for your electricity in advance. Unlike a deposit, which doesn’t cover your electricity usage, payments on a prepaid plan go directly toward your electricity costs. You’ll receive notifications about your energy usage, and you can add more funds when your account runs low to avoid any interruptions in your service.

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.

If you want to know if you can sign up for a no-deposit electricity plan of this type, enter your ZIP code on Choose Texas Power to compare plans and learn if you qualify.

Low-deposit plans

Low-deposit plans are an alternative for those who don’t 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 fair or poor credit. While low-deposit plans may involve a modest upfront payment, they can still provide cost-effective electricity solutions for customers who don’t want prepaid plans.

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.

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: With pay-as-you-go service, you can keep closer tabs on your energy usage to avoid overspending, and you know exactly how much you’re paying each month.

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 you to keep up with your balance to avoid a shut-off. If you use more electricity than 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 a light company in Texas with no deposit 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 several others, specialize in no-deposit plans. We recommend exploring Payless Power’s prepaid options. Payless provides affordable and flexible prepaid plans to help customers avoid an upfront deposit.

Payless Power offers six-month and 12-month plans for prepaid, no-deposit electricity. The following table features rates for these plans by utility:

Utility

Cities

Plan

Rate

AEP Texas Central Corpus Christi, McAllen,
Harlingen, Victoria, Laredo
6 month prepaid
12 month prepaid
20.7¢
20.7¢
AEP Texas North Abilene, San Angelo, Alpine, Vernon 6 month prepaid
12 month prepaid
21.2¢
21.2¢
CenterPoint Energy Houston, Kingwood, Galveston,
Sugar Land, Spring, Katy, Cypress
6 month prepaid
12 month prepaid
18.7¢
18.7¢
Oncor Electric Delivery Dallas, Fort Worth, Irving, Plano, Arlington, Beeville,
Midland, Odessa, Killeen, Waco, Wichita Falls, Tyler
6 month prepaid
12 month prepaid
20.1¢
20.1¢
Texas New Mexico Power Texas City, Friendswood, Lewisville, Midland 6 month prepaid
12 month prepaid
20.1¢
20.1¢

*Note: These rates are current as of 4/8/2025. 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?

Prepaid, no-deposit plans do not usually require credit checks. For instance, 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 six or 12 months. The contract includes an early termination fee of $99 if you cancel before it expires.

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

Many light companies in Texas with no deposit requirements offer same-day setup, especially if you have a smart meter. Smart meters allow providers to set up your service remotely without visiting 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 the provider 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 a member of our team. They can help answer your questions and match you with the best electricity plan for your needs and budget.

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