Ever felt like you're playing a high-stakes game just to keep your lights on? I have. It's no picnic.
I remember moving into my first apartment in Texas, excited but naive. The shock of being asked for a $400 deposit to start electricity service almost made me trip over my cowboy boots!
While not always possible, there are several tips and tricks you can use to avoid paying upfront and get your power on without a deposit.
Traditional electricity plans often ask for a hefty deposit, usually ranging from $300-$400. Typically this is because you have a low or not enough credit history. This upfront cost can be burdensome.
The deposit for electricity will vary depending on the provider or plan. If you are asked to pay a deposit our shopping platform will automatically show you similar rates from other providers. In some cases, you can dodge the deposit or qualify for a much lower deposit.
Deposits are meant as security for utility companies against unpaid bills or damages but they put extra pressure on customers who might already be struggling financially. And let's face it: Who wouldn’t rather use those hundreds of dollars elsewhere?
In Texas, setting up an electricity service can feel like pulling teeth. A standard light service may require you to cough up anywhere between $300 and $400 just to get started. For many residents, this amount isn't pocket change — it's a barrier that keeps them in the dark.
If you want a no deposit electricity plan you have a handful of options.
Electricity companies have different requirements for their soft credit check. You may not have the credit approved for one provider, but you might for a different one. When you use GridHacker, we will show you other plans that don't require you to pay a deposit.
Prepaid electricity plans work like a debit card. You load money into your account and as you use electricity your light company will charge from that account. When it runs down to a certain amount it refills automatically. Electricity rates are typically a little higher for prepaid plans. But, they don't require a deposit. So if you need electric service and want to avoid deposits, this is a good option.
Payless Power is one of the most well-known energy providers with no-deposit prepaid electricity plans.
In some cases, your electricity company may be willing to waive a security deposit if you agree to pay slightly more for electricity upfront. For example, a provider may have a plan listed at 15¢ per kWh. But, if you call them they may be willing to waive the deposit if you agree to pay 17¢ per kWh.
While it may cost you more on your monthly electric bill, at least you can avoid the deposit. In some cases, your energy provider may even be willing to drop you down to the lower rates without a credit check if you pay your bill on time.
Additionally, some energy providers will offer no deposit electricity if you can provide proof of on-time payment for your past energy bills.
In one instance we saw a small business that was asked to pay a $500 deposit even though they had been in business for over 10 years without ever missing a payment. By simply showing their past payment record they were able to sign up with no deposit.
If you are in a situation where paying your electric bill without a deposit is not feasible you have some options.
If you do not pay for your electric service, it will get shut off. This can be dangerous, especially during the summer months.
Most energy providers offer no deposit electricity plans for those who pass their credit check. The credit requirements differ from provider to provider.
Make sure you check with other providers to see if you qualify for a no deposit plan. If you can't find a no deposit electricity plan then you may want to consider a prepaid plan.
Absolutely. No deposit electricity plans are available across Texas from most light companies. If you have low or no credit you are more likely to be asked to pay a deposit. In those cases, you can enroll with a prepaid provider that has no deposit plans.
In Texas, traditional electricity services usually need a $300-$400 initial payment to turn on your lights.
Credit checks and deposit requirements vary for every energy provider. Typically they will run a soft credit check and require a credit score of 600 or higher to qualify for a plan with no deposit.
Electric companies have different rules for deposits, but yes if you pay your electric bills you will either receive your deposit back or have it applied as a credit to your account.
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