No-deposit electricity in Texas: your options and what they really cost

Yes. There are four ways, and the cheapest usually isn't prepaid. Try them in this order.

1. 1
   Qualify for a waiver

   A good payment history or being 65 or older can skip it. So can four other rules below. You get a regular plan with no deposit. See the 6 rules.

2. 2
   Offer 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.

3. 3
   Pay a deposit you'll get back

   You get it back with interest after 12 on-time months. If you have a low income, you can split a deposit over $50 into two payments.

4. 4
   Go 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.

Not unlimited. Direct Energy's terms follow the state's customer protection rules. They 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.

Many people pay much less, and many pay nothing. Before you sign up, ask the company for its exact deposit amount. Then compare it with the waivers below.

Next: who gets the deposit waived for free →

Meet any one of these rules, and you can start a regular plan with no deposit.

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. 4Change Energy’s terms, for example, let you skip the deposit at 65 or older only if you have no past-due balance.

Moving? Our guide to setting up electricity walks through the whole move-in, step by step. Need power on today? Here’s how to get same-day electricity.

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. That point can't be more than $10.

1. 1
   Read the disclosure first

   Before service starts, the company must give you a Prepaid Disclosure Statement and the plan's fact label.

2. 2
   Fund your account

   The starting balance can't be more than $75 for a home. No deposit and no credit check.

3. 3
   Your use draws it down

   Each day's power comes out of your balance. Watch for low-balance alerts.

4. 4
   Low balance means cutoff

   If your balance drops below the plan's cutoff point, the company can start to shut off your power. Add money to get back on.

Next: does prepaid really cost more? →

A deposit comes back. A higher price per kWh doesn't. Type the prices from two fact labels to see the real yearly difference.

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. Need a regular plan’s price? See this week’s cheapest plans at your usage.

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. If your income qualifies, you can also cut future bills with free weatherization.

Prepaid isn't your only choice. Run through this list first.

Next: how to get your deposit back →

A deposit is your money, held as security. You get it back.

1. 1
   Pay on time for 12 months in a row

   Then the deposit comes back, usually as a credit on your bill.

2. 2
   It earns interest

   At a rate the state sets each year, added when the deposit is returned.

3. 3
   Moving 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.

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