How to Avoid a Deposit from Electric Companies

Avoiding a deposit from electric companies might seem daunting, but it doesn’t have to be. Various state-mandated regulations offer several deposit waiver options, and some companies even provide no-deposit electricity plans. This guide will walk you through the process and provide you with essential tips on avoiding a deposit.

When do Energy Companies Not Require a Deposit?

Energy companies in Texas generally require a deposit from consumers with low credit scores. However, residents with poor credit histories may still not be required to pay a deposit due to a government mandate or an energy company’s policy. When enrolling in an energy plan, Home Energy Club can instantly show you whether a deposit is required.

If you have a low credit score, you may qualify for no-deposit electricity by providing any of the following:

  • Letter of Credit: if you have had no more than one late payment in the last 12 consecutive months with your most recent electricity provider, ask the company to provide a “letter of credit” confirming it.
  • Victim of Family Violence: provide a certification letter from a relevant government agency, such as the Texas Council on Family Violence.
  • Age 65 or Older: provide a U.S. state driver’s license, a state-issued ID card, or a passport.
  • Military Veteran: if you are an active duty or reservist military veteran, provide your government-issued military ID.
  • Low Income: request a letter from a governmental entity to prove your low-income status.
  • Medical Indigent: if you are medically indigent, provide a letter from a government agency certifying your medical indigency.

You can learn more about “no deposit” electricity and view prepaid energy plans for your area by entering your zip code in one of the boxes on this page.

Compare Payless rates for your zip code

No-Deposit Electricity Plans

In addition to these waivers, several companies offer no-deposit electricity plans. These plans, which often don’t require a credit check, are sometimes prepaid energy plans.

Payless Power and Reliant Energy are two reputable companies offering such plans. Payless Power offers no-deposit electricity, although prepaid plans can be more expensive than regular energy plans. Reliant Energy occasionally offers these plans too.

Some of the plans from Payless Power and Reliant Energy include:

{total} Payless No-Deposit

Plan Name Plan Length Rate
  • Live electricity rates last updated 09/28/2023 at 05:26 AM Central Time. Based on 1000 kWh. Enter your zip code above for rates in your area.

Call Payless Power for no-deposit plans directly at 833-926-9776.

Call Payless (833-926-9776)

{total} Reliant Energy Rates (call Reliant for prepaid plan quotes)

Plan Name Plan Length Rate
  • Live electricity rates last updated 09/28/2023 at 05:26 AM Central Time. Based on 1000 kWh. Enter your zip code above for rates in your area.

If you need a prepaid plan, you will need to call a Reliant Energy operator at 833-339-0416.

Call Reliant for more plans

Reliant Energy: No Deposit and More Options

Reliant Energy, another major energy provider, occasionally offers prepaid, no-deposit electricity plans with no credit checks. These plans are pay-as-you-go, and no ID is required. Other types of plans available from Reliant Energy include free electricity plans, month-to-month plans, and Secure Advantage plans with locked-in rates for up to 36 months.

How “No Deposit” Prepaid Plans Work

No-deposit prepaid plans function by allowing customers to pay as they go. After setting up an account and funding an initial balance, customers pay for their electricity as they use it. These plans typically feature:

  • No deposit
  • No credit check
  • No contract
  • No ID required
  • Same day service

Note about Regular Plans with Low Rates

Before committing to a prepaid plan, which often comes with a higher rate, try enrolling in a regular energy plan with low credit requirements. If a deposit is required for these regular energy plans, then you may wish to consider a prepaid plan.

Selecting the Right Plan

When selecting an energy plan, it’s essential to choose a reputable electric company that won’t deceive you with hidden terms. Reading reviews of electric companies and checking lists of trusted energy companies can help. Be sure to read the fine print and confirm that your chosen plan is a good fit for your home usage and budget. Be aware of gimmick plans that may cause bill surprises. You may want to look at our Electricity Shopping guide for help on choosing the best energy plan for your home.

With a bit of research and careful planning, you can find a plan that suits your needs and possibly avoid paying a deposit on your electricity service.

Additional Resources

  • Smart Meter Texas: Visit the Smart Meter Texas website to conveniently access your historic usage information. You may also check out our guide for helpful tips on understanding the Texas Smart Meter and how your energy usage affects your electricity bills.
  • Home Energy Club’s electricity usage calculator: Use our helpful Energy Cost Calculator guide to learn how much energy each appliance uses and help save money on your energy bills.

Remember, Texas electricity deposit regulations are meant to accommodate the needs of diverse consumers. Whether you’re eligible for a waiver, a no-deposit plan, or a plan with low credit requirements, there’s an electricity plan designed for your situation. Compare electricity plans from top Texas energy providers and find the plan that best fits your needs.


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You should always read a plan’s EFL details to decide if it’s a fit for you, but our system does the tedious math to help you compare estimated costs. Of course, your future bill amounts will depend on your future usage.

You will find a widget on Home Energy Club which fetches your home’s energy usage data from Smart Meter Texas (SMT) and runs calculations of the rate structures of energy plans to help you conveniently estimate the cost of energy plans you are considering, based on your prior 12 months of energy usage as reported by SMT.

In one of the text panels of the widget, you will see an authorization button. By checking the permission box above the fields in which you enter your name and email address, and clicking on the authorization button, you are authorizing Smart Meter Texas to provide us with your location’s energy usage information so that our system can run cost calculations. It’s important to note that errors can occur when developing and running calculations, and the Company does not guarantee that its cost numbers are correct. You should always read the Electricity Facts Label (EFL) for each energy plan you are considering before enrolling, and make an independent decision on whether the plan is an appropriate fit for your home based on your own calculations and all the information disclosed by energy providers in the EFL.

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