No-deposit electricity plans allow you to pay upfront for energy instead of at the end of the month. You add money to your account and the electric company pulls from these funds as you use power. You’ll get alerts when your balance is low so you can recharge your account and avoid disconnection or additional fees. Many energy providers make it simple to manage your account with apps or websites to check your balance, monitor usage and add funds as needed.
Prepaid plans are a popular plan type for those who want more control over their energy spending or don’t meet the credit requirements of traditional postpaid plans. With no credit checks or upfront deposits, prepaid plans make it simple to sign up regardless of your financial background.
We rate Payless Power as the best no-deposit light company for no-deposit electricity plans. However, we recommend comparing rates and plans from multiple providers before signing up to ensure you get the best energy plan for your needs. Learn more about prepaid energy to determine if it’s the right fit for you.
How No-Deposit Electricity Works
When you sign up for a no-deposit or prepaid energy plan, you’ll create an account and add funds to your balance. This initial balance fund isn’t a deposit. It applies directly to the energy you’ll use. As you fund your account, your energy company uses the funds to pay for electricity as you use it instead of paying your bill at the end of the month. You’ll receive email or text alerts about your usage and account balance to stay informed. When your balance gets low, you can add funds through online payments or a mobile app. Some providers also let you set up auto-pay.
Pay-as-you-go electric plans offer flexibility to pay when it’s convenient for you and control your spending in real-time. However, it requires active account monitoring to ensure there are enough funds to avoid disconnection. With a postpaid plan, you receive an electricity bill at the end of the month to pay after consumption. These plans still require monitoring your energy usage to prevent an unexpectedly high bill, but you won’t have to worry about your balance running out.
Smart Meter Technology
Smart meters are a more efficient way to manage prepaid energy plans than traditional meter reading methods. Instead of having a technician come to your home for a reading, smart meter technology tracks your energy usage and communicates remotely with your provider. The smart meter connects to your energy account, and your provider uses the information to send real-time notifications about your consumption and remaining balance. You can use this information to adjust your usage, monitor spending and top off your account balance.
Top No Deposit Electricity Providers
We rated Texas energy companies based on plan options, customer satisfaction and energy costs. Payless Power is our top choice for no deposit plans because it specializes in prepaid offerings, making it a reliable option. It’s one of the online no-deposit light companies we know of that offers price protection with fixed rates. Other providers may have a higher overall rating due to a wider variety of plan offerings aside from prepaid plans. You can compare these providers in the table below.
| Provider Name | Initial Account Balance Required | Payment Methods | Special Features | Our Rating (Out of 5) |
| Payless Power | $40 | Online, in-store, mail, phone | Fixed rates, sixx or 12-month plans, same-day electricity services | 4.0 |
| Reliant Energy | $75 | Mobile app, online, in-store | AutoReload, 24/7 customer support, No long-term contract | 4.7 |
| Frontier Utilities | $30–$50 | Online, in-store, mail, phone | No cancellation fees or long-term contract, same-day electricity services | 4.4 |
| Direct Energy | $75 | Online, in-store, phone | No cancellation fees or long-term contract, same-day electricity services | 4.3 |
Payment and Recharge Options
Energy companies offer several payment methods to fit your needs. You can make online payments using the provider’s website or mobile app to add funds quickly and from anywhere. Automatic payments are a great option to ensure consistent funds to your account. With some energy providers, you can also pay and recharge your account at storefront locations if you prefer an in-person experience.
Benefits of No Deposit Electricity
Prepaid (or no-deposit) energy plans give you more control over your energy costs and budget without surprisingly expensive bills at the end of the month. Here are some key advantages of choosing a prepaid electricity plan.
- No credit checks: You can sign up and enroll without a credit check, making prepaid plans an accessible option for those with low scores or no credit history.
- No deposit: Prepaid energy plans, or no-deposit energy plans, allow you to bypass the large up-front deposit traditional energy plans often require.
- Flexible payment options: You can choose when and how to pay to reload your account. Consider setting up autopay to save you time and avoid a disconnection notice.
- Usage monitoring: Your energy provider can send you daily texts or email alerts about your usage. Review the alerts for any unusual activity to understand how you use energy. Use the alerts to adjust your usage and stay within budget.
- No surprise bills: Paying as you go for electricity and receiving alerts reduces the risk of a surprise bill at the end of the month. You can keep your energy costs predictable and manageable with prepaid plans.
- No long-term contracts: Some prepaid light companies, like Reliant Energy, offer variable-rate plans without a long-term contract. Your electric rate might vary from month to month, but you won’t have to pay any cancellation fees. Companies like Payless Power require a six or 12-month contract and have an early termination fee (ETF) if you cancel the plan before the contract ends.
Choosing the Right No-Deposit Electricity Provider
We generally recommend Payless Power for deposit-free electricity plans because it offers fixed rates, protecting you from variable-rate price hikes. However, you can compare no-deposit options from other energy providers by entering your ZIP code on this page. Use the filters and select the “all credit approved” feature to only show prepaid plans.
Note that not all energy companies offer no-deposit or prepaid energy plans.
Compare your options based on pricing, payment flexibility and customer service reputation. Check the price breakdown across usage levels to see how much the plan’s cost may vary based on usage.
Flexible payment options allow you to choose the best method of payment for you, including online, text, over the phone and by mail. We recommend checking customer reviews to ensure the provider has a strong reputation for reliable support.
Cost Considerations
Use the electricity facts label (EFL) of each plan to compare electric rates and potential fees. Fees for prepaid plans are similar to potential fees you pay with a traditional postpaid plan. Here are potential costs to consider when choosing an energy plan.
- Daily charge: Some energy providers, such as Payless Power, charge a fee per day, listed as the daily charge in the plan’s EFL. Prepaid light companies like Reliant Energy do not charge a daily fee. This cost is similar to base fees on some traditional postpaid plans.
- Energy charge: This is the price you pay per kilowatt-hour of electricity used. Traditional fixed-rate plans typically have cheaper energy charges than prepaid plans.
- Utility fees: A charge from your utility company for delivering power to your home. The cost is the same for prepaid and postpaid plans because it’s from the utility, not your electricity provider.
- Cancellation fee: You’ll pay an ETF for fixed-rate prepaid plans, not variable-rate plans. Payless Power’s ETF costs $99 for the 12-month prepaid plan. Traditional postpaid plan ETFs generally range from $150 to $395, depending on the plan and provider.
- Reconnection fee: If your funds run out and your power gets disconnected, you may have to pay a reconnection fee. Utility companies charge this fee for both prepaid and postpaid plans.
Frequently Asked Questions About No Deposit Electricity Plans
Do no-deposit electricity plans cost more than traditional plans?
No-deposit energy plans generally have higher rates than the lowest fixed-rate option in your area, depending on your usage level. At the time of writing, Payless Power’s prepaid plans for the 77077 Houston ZIP code cost more than the average electricity rate in Texas of 15.61 cents per kWh based on U.S. Energy Information Administration (EIA) data.
What happens if my prepaid balance runs out?
When your balance runs out, your electricity supplier will disconnect your power service. Once you add funds to your account, utilities will typically restore service within a few hours. Providers may delay disconnection if the balance runs out during non-business hours or on weekends, but this can result in additional charges.
Can I switch from a traditional plan to a prepaid plan?
Yes, you can switch from a traditional plan to a prepaid plan using the Home Energy Club marketplace. Start by entering your ZIP code and selecting the “all credit approved” feature. Choose which prepaid plan to switch to and enroll online or over the phone in just a few minutes. Consider potential cancellation fees before switching to ensure the benefits outweigh the ETF cost. New customers or those moving to Texas won’t need to worry about paying an ETF.
Do I need a special meter for prepaid electricity service?
Prepaid energy plans typically require a smart meter for service. Most new homes in Texas have one. However, if your home doesn’t currently have one, you may need to request one from your utility company.
How We Rate and Review Texas Electricity Companies
With dozens of providers and hundreds of plans available in the deregulated Texas market, choosing the right one can feel overwhelming. We created a comprehensive rating methodology to help Texans cut through the complexity and find the best electricity plan for their needs, whether they’re moving to Texas or looking to switch providers.
We’ve researched dozens of Texas electricity providers and scored them out of 5 stars based on cost, bill predictability, customer satisfaction, brand trust, and plan features. Here’s how those core factors weighed into our ratings:
- Plan features (33%)
- Customer satisfaction and brand trust (27%)
- Plan rates and pricing (20%)
- Energy bill predictability (20%)
