No Deposit Electricity Plans
Deregulation resources

About no deposit plans

No deposit electricity plans are energy options that do not require an upfront deposit to begin service. Customers with lower credit scores are often required to pay a deposit when they sign up for an electricity plan in Texas. But for many residents and business owners, paying a deposit upfront is less than ideal.

Choose Texas Power works with Texas retail electricity providers (REPs), some of which offer no deposit options. No deposit plans can be helpful for consumers who want to avoid a credit check or who don’t have the funds to pay a deposit before service begins.

To explore available no deposit plans in your area, enter your ZIP code above. You will find a list of current energy plans near you and you can filter for no deposit options that interest you. To learn more about the types of plans – including details on no deposit plans – continue on this page or visit our Plan Guide.

Types of no deposit plans

Prepaid plans: The most common type of no deposit plan is a prepaid electricity plan. With prepaid plans, customers pay upfront for their electricity. This money goes directly towards the electricity that powers your home – which is what sets it apart from a deposit.

With a prepaid energy plan, customers will receive notifications about their energy usage. When the energy usage level nears the amount they have paid for, they will need to pay upfront for more electricity. These are also called pay-as-you-go electricity plans and ensure you only pay for the exact amount of energy you consume.

High credit scores: There is also the potential for customers with high credit scores to be exempt from deposits. This requires a credit check, and if the customer meets the provider’s credit threshold, they will be able to avoid paying a deposit. When you enter your ZIP code above, Choose Texas Power will walk you through this process and let you know if you qualify for deposit exemption.

Is a no deposit plan right for me?

The answer to this question depends on your financial situation and the type of no deposit plan that interests you. Before signing up for a no deposit plan, consider the following benefits and drawbacks.

Pros of no deposit plans

  • No deposits. The money you pay goes directly towards providing electric service to your home.
  • No credit checks. Prepaid no deposit plans do not require credit checks, making them a good option for customers with low credit scores or who want to avoid a credit check altogether.
  • Bill control. Under a prepaid plan, you have absolute control over how much you spend on electricity bills. Pay-as-you-go plans are ideal for consumers who wish to pay only for the exact amount of electricity that they use.
  • No contracts. No deposit plans that are paid upfront do not require contracts and can be cancelled at any time without early termination fees.

Cons of no deposit plans

  • Upfront costs. Although it is not considered a deposit, customers will likely need to pay for their electricity upfront if they choose a prepaid no deposit plan. If you fall into a high-credit no deposit bucket for a postpaid plan, this does not apply.
  • Automatic shutoffs. Many no deposit plans are prepaid or require frequent payments throughout the month. This means if you reach the threshold of electricity you paid for, your service will automatically be disconnected. Service will be reconnected when you add more money to your account.
  • Higher rates. Some no deposit plans have higher electricity rates than other plans. While a no deposit plan can be a good option for immediate service, it may mean paying more in the long run.

No deposit electric companies

Not all retail electricity providers (REPs) offer no deposit plans. In the Choose Texas Power marketplace, customers interested in no deposit options can explore offerings from First Choice Power and Payless Power. Or, if you have a high credit score, select the provider of your choice and we’ll let you know if they require a deposit. 

If you are interested in a no deposit electricity plan, enter your ZIP code above to find plans in your area. You can filter for prepaid energy options. If you aren’t sure what type of plan is best for you, call one of our energy experts for more guidance.

No deposit electricity plan FAQs

Does a no deposit energy plan require a credit check?

If you sign up for a prepaid no deposit plan, Choose Texas Power does not need to run a credit check. However, if you want to find out whether you would be charged a deposit for other available electric plans, we will need to run a credit check to determine whether you qualify for a deposit exemption.

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

Most no deposit plans are month-to-month, meaning you do not need to sign a long-term contract and can switch to another energy plan easily. Prepaid plans do not require a contract and you can cancel at any time. Check the contract term section of a plan to find the most accurate information. 

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

Several energy providers that offer no deposit plans can provide same-day connection. Most Texas homes have smart meters, meaning you won’t need to schedule a technician visit for service to begin and your provider can connect to your home remotely.

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

If you are moving to a new home, contact your energy provider directly to discuss whether it operates in your new area. If it does, you can ask about transferring your no deposit plan. If it does not offer service in your new ZIP code, you can use the Choose Texas Power marketplace to find another energy plan.

My power went out. What should I do next?

Contact your utility company. Your utility is determined based on your location and is in charge of maintaining electrical infrastructure, including restoring power when there’s an outage. Visit our utilities page for a detailed list of Texas utility companies and how to contact them.

Updated: 10/19/2021

Deregulated energy made easy

Let us put the power in your hands with a new electricity plan.

Or call us today:  1-877-425-9108
woman looking at laptop