Can I get electricity in Texas with no deposit?
Yes. There are four ways, and the cheapest usually isn't prepaid. Try them in this order.
- 1Qualify for a waiver
A good payment history, being 65 or older, or one of the other rules below means no deposit and a regular plan. See the 6 rules.
- 2Offer a letter of guarantee
Someone with good credit agrees in writing to cover your bill if you don't pay. You get a regular plan with no cash deposit.
- 3Pay a deposit you'll get back
It's refundable with interest after 12 on-time months. Low-income customers can split a deposit over $50 into two payments.
- 4Go prepaid
No deposit and no credit check, but you pay before you use power, and it can cut off fast when your balance runs low.
How big can an electricity deposit be?
Not unlimited. Direct Energy's terms, which follow the state's customer protection rules, cap a home deposit at whichever is greater: the next two months’ estimated bills or one-fifth of the estimated yearly bill. Reliant’s terms say the same.
Bars start at zero. The cap is the greater of the two, so about $393 for a home paying the 2024 Texas average of $163.72 a month (U.S. Energy Information Administration). Your company estimates your own bills, so your cap will differ.
Many people pay much less, and many pay nothing. Always ask the company for its exact deposit amount before you enroll, and compare it with the waivers below.
Who can skip the deposit for free?
Meet any one of these rules and you can start service with no deposit, on a regular plan.
From Direct Energy’s and Reliant’s terms, which follow state rules. Other companies use the same rules, but ask about their exact credit process.
Moving? Our guide to setting up electricity walks through the whole move-in, step by step.
How does prepaid electricity work in Texas?
You pay before you use power, like a prepaid phone. State rules cap the starting balance at $75. The company can only start a cutoff when your balance falls below a set point, and that point can't be more than $10.
- 1Read the disclosure first
The company must give you a Prepaid Disclosure Statement and a fact label for the plan before service starts.
- 2Fund your account
The starting balance can't be more than $75 for a home. No deposit and no credit check.
- 3Your use draws it down
Each day's power comes out of your balance. Watch for low-balance alerts.
- 4Low balance means cutoff
When your balance drops below the plan's cutoff point, the company can start a disconnection. Add money to get back on.
Deposit or prepaid: which costs less?
A deposit comes back. A higher price per kWh doesn't. Type the prices from two fact labels to see the real yearly difference.
That's about $32.88 a month at 1,096 kWh. The $200 deposit comes back after 12 on-time months, so the regular plan is cheaper over a year.
Use each plan's average price at your usage from its Electricity Facts Label. Prepaid plans may also charge daily or monthly fees; check the label.
What protections do prepaid customers have?
Prepaid still comes with rules that protect you.
Behind on bills and worried about a shutoff? See help paying your electric bill, including Texas's CEAP program. Families who qualify by income can also cut future bills with free weatherization.
What's my best move with bad credit?
Prepaid isn't your only choice. Run through this list first.
Check whether you meet a waiver rule, like no more than one late bill last year. Ask a family member for a letter of guarantee. If you must pay a deposit and have a low income, ask to split it into two payments.
Compare a prepaid plan's price per kWh with a regular plan's on Power to Choose, and read the fees on its fact label. Use the cost check above before you decide.
How do I get my electricity deposit back?
A deposit is your money, held as security. You get it back.
- 1Pay on time for 12 months in a row
Then the deposit comes back, usually as a credit on your bill.
- 2It earns interest
At a rate the state sets each year, added when the deposit is returned.
- 3Moving out?
The deposit goes toward your final bill, and any amount left over comes back to you.
Want to know how your bill stacks up? See the average Texas electric bill and what a fair rate looks like.
Choosing a company? See whose record is cleanest in our company scores, and how fixed and variable plans differ. Bill higher than you expected? See why your bill is so high.
No-deposit electricity questions, answered
Can I get electricity in Texas with no deposit?
Yes. You can qualify for a waiver, like a good payment history or being 65 or older, offer a letter of guarantee, or choose a prepaid plan with no credit check. A regular plan with a waived deposit is usually the cheapest route, not prepaid.
How much is an electricity deposit in Texas?
It varies by company and your estimated bills. Direct Energy’s and Reliant’s terms cap a home deposit at whichever is greater: the next two months’ estimated bills or one-fifth of the estimated yearly bill. For a home paying the 2024 Texas average of $163.72 a month, the cap is about $393.
Is an electricity deposit refundable?
Yes. It's held as security, not charged as a fee. You get it back with interest, at a rate the state sets each year, after 12 on-time months in a row. If you move, it's applied to your final bill and any remainder is returned.
How do I avoid an electricity deposit with bad credit?
Check the waiver rules first: you may qualify with no more than one late bill last year or no disconnections. You can also offer a letter of guarantee from someone with good credit. Prepaid plans need no credit check, but compare their price first.
Do seniors pay an electricity deposit in Texas?
Often not. If you or your spouse are 65 or older, you can qualify to skip the deposit with proof of age, according to Direct Energy's terms, which follow state rules. You then get a regular plan with no deposit.
Is prepaid electricity more expensive?
It can be. Some prepaid plans charge a higher price per kWh or add fees, which costs you every month, while a deposit comes back. Compare the fact labels and use our cost check to see the yearly difference at your usage.
How does prepaid electricity work in Texas?
You add money before you use power. State rules cap the starting balance at $75. Your use draws it down, and when the balance drops below the plan's cutoff point, which can't be more than $10, the company can start a disconnection.
Can prepaid electricity shut off quickly?
Yes, that's the main risk. Service can be disconnected once your balance falls below the plan's cutoff point of $10 or less. Companies can't disconnect during an extreme weather emergency. Keep a buffer, especially before weekends and big weather.
Is a deposit or prepaid cheaper?
Usually the deposit. It's a one-time hold you get back with interest, while a higher prepaid price costs you every month. For example, 3 cents more per kWh at 1,096 kWh a month is about $395 more a year.
How do I get my electric deposit back?
Pay your bill on time for 12 months in a row, and the company returns the deposit with interest, usually as a bill credit. If you close the account, it goes toward your final bill and any amount left over is returned.
Sources and updates
Sources (6)
- Public Utility Commission of Texas, 16 TAC §25.498, Prepaid Service (via Cornell Law School’s Legal Information Institute): a residential connection balance of no more than $75, a disconnection balance of no more than $10, and the Prepaid Disclosure Statement.
- Direct Energy, Terms of Service, Residential Postpaid: the deposit cap, the six ways to qualify without a deposit, the letter of guarantee, two-payment deposits for low-income customers, interest, and refunds after 12 on-time payments.
- Public Utility Commission of Texas, 16 TAC §25.478, Credit Requirements and Deposits: the state rule behind electricity deposits.
- Texas Legislature, Utilities Code, Chapter 183: interest on customer deposits.
- U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price, Table 5A (2024): the $163.72 average Texas monthly bill used in the deposit-cap example.
- Public Utility Commission of Texas, Power to Choose: the state’s official plan comparison site, including prepaid plans and their fact labels.
Changelog · last updated October 5, 2026 · 1 update
- October 5, 2026: Guide published: the four ways to start service with no deposit, the deposit cap and waivers, how prepaid works under state rules, prepaid protections, and a deposit-or-prepaid cost check.
How to cite this page: The Day Company, "No-deposit electricity in Texas: your options and what they really cost", updated October 4, 2026, https://theday.company/tx/no-deposit-electricity.
Deposit rules shown come from Direct Energy’s terms, which follow state customer protection rules; each company sets its own credit process, so ask yours. Prepaid limits are from the PUCT’s prepaid service rule. Cost-check figures are examples you can change. The Day Company is not affiliated with any electric company named here.