Get Electricity in Texas Without a Deposit
What is No-Deposit Electricity?
No-deposit electricity plans allow you to start your power service without paying a large upfront security deposit. Traditional electricity plans in Texas often require deposits ranging from $250 to $400, which can be a significant financial burden when you’re moving, starting fresh, or managing a tight budget.
With no-deposit plans, you can get your lights turned on quickly and affordably, keeping more money in your pocket when you need it most.
Who Qualifies for No-Deposit Electricity?
You may qualify for no-deposit electricity in Texas through several pathways:
Good Credit Score If you have a credit score of 600 or higher, most electricity providers will waive the deposit requirement. The provider will conduct a soft credit check that won’t impact your credit score to verify your eligibility.
Age 65 or Older Texas residents who are 65 years of age or older can qualify for no-deposit electricity by providing valid identification (such as a driver’s license or passport). You must also have a clean payment history with no unpaid electricity bills from the past two years.
Letter of Credit If you’ve been a reliable electricity customer for the past 12 months with no late payments, no disconnections, and no unpaid bills, your previous provider may issue you a letter of credit. This letter proves your payment history and can help you avoid a deposit with your new provider.
Victim of Family Violence Texas law provides protection for victims of family violence. If you can provide a signed certification letter from the Texas Council on Family Violence, electricity providers must waive the deposit requirement.
Prepaid Electricity Plans Prepaid plans are available to everyone, regardless of credit history or background. These plans require no credit check and no deposit, making them the most accessible option for starting electricity service in Texas.
Types of No-Deposit Plans
Traditional Fixed-Rate Plans (No Deposit) If you qualify based on credit score or other criteria, you can choose from standard fixed-rate electricity plans without paying a deposit. These plans offer:
- Locked-in rates for the duration of your contract (typically 6-36 months)
- Predictable monthly billing
- Protection from market price fluctuations
- Access to competitive rates from major Texas providers
Prepaid Electricity Plans Prepaid electricity works like a prepaid phone plan. You pay for electricity in advance, and your account balance decreases as you use power. Key features include:
- No credit check required
- No long-term contract commitment
- Low initial payment to start service (typically $50-$100)
- Daily usage notifications via text or app
- Real-time monitoring of your electricity consumption
- Same-day electricity activation available
Low-Deposit Alternatives Some providers offer reduced deposit options if you don’t qualify for complete deposit waiver but want to minimize upfront costs. These plans may require deposits of $100-$150 instead of the standard $250-$400.
How Much Are Electricity Deposits in Texas?
According to regulations set by the Public Utility Commission of Texas (PUCT), electricity deposits cannot exceed one-sixth of your estimated annual billing, which typically equals about two months of service.
Average Deposit Amounts by Home Size:
- Apartments/Small Homes (500-750 sq ft): $200-$250
- Medium Homes (1,000-1,500 sq ft): $275-$325
- Large Homes (2,000+ sq ft): $350-$450
These deposits are refundable after 12 consecutive months of on-time payments. The provider will either credit the deposit to your account or return it to you with interest. However, avoiding the deposit altogether keeps this money available for other expenses.
Benefits of No-Deposit Electricity
Keep More Cash Available Avoiding a $300+ deposit means you have more money for moving expenses, furniture, groceries, or emergency savings when starting service at a new address.
No Credit Check Hassles (Prepaid Plans) Prepaid electricity plans don’t require credit checks, making them ideal if you have limited credit history, are rebuilding your credit, or simply prefer privacy.
Same-Day Electricity Activation Many no-deposit plans, especially prepaid options, offer same-day power activation. If you sign up before 5 PM CST on weekdays, your electricity can be turned on the same day in most Texas service areas.
Better Budget Control Prepaid plans help you monitor electricity usage daily and adjust your consumption habits in real-time. This awareness often leads to lower monthly bills.
Flexible Contract Terms No-deposit plans come with various contract lengths from month-to-month (prepaid) to 36-month fixed-rate plans, giving you flexibility to choose what works best for your situation.
Things to Consider Before Choosing a No-Deposit Plan
Rate Comparison While prepaid plans offer convenience and no credit checks, they sometimes have slightly higher per-kWh rates than traditional fixed-rate plans. Use Karya Energy’s comparison tool to evaluate the total cost based on your expected monthly usage.
Contract Terms Fixed-rate no-deposit plans typically require contracts ranging from 6 to 36 months. Make sure you understand the early termination fees if you need to cancel before the contract ends.
Usage Monitoring (Prepaid Plans) With prepaid electricity, you must actively monitor your account balance and add funds when needed to avoid service interruption. Most providers send alerts, but it requires more engagement than traditional billing.
Long-Term Savings If you can qualify for a traditional fixed-rate plan without a deposit (due to good credit), this is often the most cost-effective option over time. Compare the rates carefully before choosing a prepaid plan solely to avoid a deposit.
Frequently Asked Questions
Do I need good credit for no-deposit electricity? Not necessarily. If you have a credit score of 600 or above, most providers will waive the deposit. If your credit score is lower, you can choose a prepaid electricity plan that requires no credit check at all.
Are no-deposit plans more expensive? Prepaid plans may have slightly higher rates than some fixed-rate plans, but not always. Traditional fixed-rate plans (if you qualify based on credit) offer competitive rates with no deposit required. Always compare the total cost based on your expected usage.
What happens if I miss a payment on a prepaid plan? With prepaid electricity, you pay in advance, so there are no “missed payments.” However, if your account balance runs out, your electricity service will be interrupted until you add more funds. Most providers send alerts before your balance gets too low.
Can I switch from a prepaid plan to a traditional plan later? Yes! Prepaid plans typically have no contract, so you can switch to a different plan type at any time. This flexibility makes prepaid plans a great option if you’re rebuilding credit and want to qualify for better rates later.
How quickly can I get electricity turned on with a no-deposit plan? Many providers offer same-day activation for prepaid plans if you enroll before 5 PM CST on weekdays. Traditional fixed-rate plans may take 1-3 business days depending on your move-in date and TDU coordination.
Will I get my deposit back if I paid one with my previous provider? Yes, if you paid a deposit to your previous electricity provider and maintained 12 months of on-time payments, they are required to refund your deposit (with interest) when you close your account or after the qualifying period.
What is a soft credit check? A soft credit check allows the provider to review your credit history without impacting your credit score. This is different from a hard inquiry (used for loans or credit cards) which can temporarily lower your score.
Are there any hidden fees with no-deposit plans? Always review the Electricity Facts Label (EFL) for complete fee disclosure. Common fees include early termination fees, returned payment fees, and TDU delivery charges (which all plans have). Karya Energy displays all fees transparently in our comparison tool.