No-Deposit Electricity Plans in Texas (January 2026)

Prepaid Electricity Plans (Pay-As-You-Go)

Prepaid plans are the most common type of no-deposit electricity plan. With a prepaid (pay-as-you-go) plan, you put money into your account before you use electricity, and your usage draws down that balance. There is no deposit and no credit check for these plans – everyone qualifies as long as you make the initial payment to fund the account. This upfront payment (often $40–$75 or more, depending on the provider) is not a deposit held by the company, but rather funds for your upcoming electricity usage.

As you consume energy, you'll get daily or weekly usage alerts via text/email and can add funds as needed to avoid interruption. Prepaid plans typically have month-to-month terms with no long contract commitment, giving you flexibility to switch if needed. This type of plan is ideal if you want to avoid credit checks or prefer the pay-as-you-go style of managing utilities. Just keep in mind you'll need to actively manage your balance to ensure continuous service.

No-Deposit Postpaid Plans (Waived Deposit)

No-deposit postpaid plans are a traditional electricity plan with monthly billing that does not require a deposit because you meet certain qualifications. Many fixed-rate and variable-rate plans in Texas can become "no-deposit" plans if you pass the provider's credit criteria or qualify for an exemption. For example, if your credit score is high enough (commonly in the 600+ range), the provider may waive the deposit and offer you the plan outright. Even if your credit is moderate, you might present alternative proof of reliability – such as a letter of credit from your last electric company showing a solid on-time payment history – to waive the deposit. Texas regulations also require deposit waivers for customers who meet specific conditions. By law, all Texas electric companies must waive the deposit for applicants who:

• Meet a satisfactory credit score threshold or have a qualifying credit report.
• Provide a letter of credit from a previous provider showing no more than one late payment over the past 12 months.
• Are 65 years of age or older and not currently delinquent on any electric bill.
• Can furnish a certification letter confirming they are a victim of family violence (as defined by the Public Utility Commission of Texas rules).

If you fall into any of those categories, you can enroll in a standard plan without paying a deposit. In practice, a no-deposit postpaid plan works just like any normal plan – you use electricity throughout the month and then receive a bill for your usage – but you didn't have to put down money upfront to start service. Just remember that not every provider advertises no-deposit options for all their plans; you often have to qualify for it. It never hurts to ask a provider if they'll waive the deposit based on your history or circumstances.

Qualifying for No-Deposit Electricity

Qualifying is usually straightforward, but it depends on the type of plan:

• Credit Score Check: For no-deposit postpaid plans (where the deposit is waived), your credit score plays a big role. Generally, a credit score around 580–600 or higher is the typical cutoff to have a deposit waived in Texas. Each provider sets its own threshold, but if you're in the 600+ range, you stand a good chance of avoiding a deposit. Also, remember that checking eligibility often uses a "soft" credit inquiry that doesn't hurt your score.
• Texas Deposit Waiver Rules: As noted earlier, Texas has specific deposit waiver rules that might automatically qualify you. Be prepared to show documentation if you claim these. For instance, if you're over 65 and have a recent electric bill with no outstanding balance you can have the deposit waived by law. If you have a letter of credit from your previous electric company showing 12 months of good payment history, that letter can be given to a new provider to waive the deposit. Victims of domestic family violence can obtain a certification letter from the Texas Council on Family Violence; electricity providers must accept that and waive the deposit requirement. Make sure to mention any of these situations to the provider during sign-up, as they won't know unless you tell them. It can save you hundreds of dollars.
• Prepaid Plan Qualification: For prepaid no-deposit plans, almost everyone qualifies. There is typically no credit check at all. You'll just need to be able to pay the initial funding amount and have standard identification information ready. So if credit is an issue, remember that prepaid plans are a guaranteed approval type of option. Also, some providers may have a minimum upfront payment (for example, $50 to start service). Ensure you can meet that; it's usually much lower than a deposit and goes toward your usage.
• Alternative Methods: If you don't meet a credit score requirement and you'd prefer a postpaid plan, ask the provider about alternatives. Some might allow a third-party guarantor or co-signer with good credit to sign on your account, promising to cover bills if you default – this could remove the deposit for you. Others might accept proof of steady income or recent on-time rent/utility payments as a show of reliability. Every retailer is a bit different, but many are willing to consider factors beyond just your credit score to qualify you for no deposit.

Choosing the Right No-Deposit Plan

Once you know what you qualify for, it's time to compare your options. Here's how to choose a plan wisely:

• Compare Rates and Fees: Don't just jump at "no deposit" in big letters – you still need to look at the electricity rate and any fees associated with the plan. Check the price per kilowatt-hour (¢/kWh) at your typical usage level (500, 1000, 2000 kWh) and see if it's competitive. Also look for monthly base charges, daily fees (common on some prepaid plans), and other charges. Texas providers present this info in the Electricity Facts Label (EFL) for each plan – read the EFL carefully to understand the full cost structure.
• Fixed vs. Variable Rate: Decide if you want a fixed-rate plan or variable-rate plan. Fixed-rate plans lock in a set price per kWh for the duration of your contract term, providing stability (useful if you want predictable bills). Variable or month-to-month rates can change with the market; they offer more flexibility to switch but your cost may rise or fall over time. If you're choosing a prepaid plan, you might effectively be on a variable rate that can adjust each month. If stability is important, look for a no-deposit option that is fixed-rate. On the other hand, if you value flexibility or plan to shop again soon, a variable rate or month-to-month plan could be fine.
• Contract Terms and Commitment: Even if a plan has no deposit, check the contract length and terms. Is it truly month-to-month, or are you signing up for a 12-month or 24-month term? If there's a term, is there an early termination fee (ETF) for leaving the plan early? Many prepaid/no-deposit plans are month-to-month with no cancellation fee (since there's no long commitment), which is great. But some no-deposit eligible plans could be longer-term contracts – those might carry an ETF. Make sure you're comfortable with the commitment. If you think you might move or want to change plans in a few months, it's safer to choose a plan with no term or a very low ETF.
• Provider Reputation and Service:No-deposit plans are offered by both big brand providers and smaller companies. Do a little research on the provider's customer service and reliability. Since you might be dealing with them regularly (especially on prepaid, where you'll interact with their payment system often), you want a company known for helpful customer support and transparent billing. Check if they offer 24/7 support or convenient payment methods, and if their existing customers are satisfied. A slightly higher rate might be worth it if the company provides a better customer experience or more user-friendly apps for tracking your usage.
• Features and Tools: Look at the features that come with the plan. Prepaid plans often have online dashboards or smartphone apps to track your usage and balance in real time. Some even offer insights or tips on saving energy. If you're environmentally conscious, see if the provider offers a renewable energy no-deposit plan (many do, allowing you to get wind or solar-backed electricity without a deposit). Also, some providers may bundle perks like free nights or weekends in their plans – though typically those deals are with traditional plans that might require deposits or good credit. Still, it's worth checking if any promotional incentives apply to the no-deposit options.