No Deposit Electricity in Texas: Prepaid Options Guide 2026

Traditional electricity providers often require deposits of $150-$400 if you have poor credit or no credit history. But you have options in Texas.

Two paths to no-deposit electricity:

Prepaid Electricity:
- Pay for power in advance
- No deposit required, no credit check
- Balance alerts as you use power
- Service disconnects if balance hits zero
- Most flexible option for those who can't pass credit checks

Traditional Plans with Credit Workarounds:
- Some providers waive deposits with letter of credit from previous utility
- Automatic payment enrollment can eliminate deposits
- Requires documentation but gives access to competitive fixed rates

Bottom line: Prepaid is faster and easier. Traditional plans with workarounds are cheaper long-term if you qualify.

Prepaid electricity flips the traditional model. Pay first, use power, refill when low.

Getting Started:
- Sign up online or by phone—typically 10-15 minutes
- Make an initial payment ($25-$75 depending on provider)
- Service activates within 1-3 business days (same-day available from some providers)
- No credit check, no SSN required with some providers, no deposit

Ongoing Usage:
- Smart meter tracks real-time usage
- Balance decreases as you use power
- Receive alerts at low balance thresholds ($10, $5, $0)
- Add funds anytime via app, website, phone, or retail locations
- Service disconnects when balance hits $0 (no notice required in Texas for prepaid)

The Tradeoff:

You're paying for convenience and accessibility, not the lowest possible rate.

Several prepaid providers operate in Texas. Here are the major players:

Payless Power: The largest prepaid provider in Texas. Same-day service available. Multiple refill options including retail locations. Daily usage alerts. No ID required for some plans.

Pogo Energy: No contract, no late fees, no disconnect fees. Daily balance updates. Lower rates than some prepaid competitors. Good mobile app.

Now Power: No ID required for enrollment. Simple pricing. Available in most Texas markets. Quick connection times.

Acacia Energy: Focused on underserved markets. Available in Oncor, CenterPoint, and AEP territories.

Snap Energy Latino: Bilingual support. No SSN required. Strong presence in Hispanic communities.

Rates change frequently. Check current pricing before enrolling.

If you want lower fixed rates but can't pay a deposit, try these approaches:

Letter of Credit: Request a letter from your previous electricity provider showing 12 months of on-time payments. Many Texas REPs accept this in place of a deposit or credit check.

Automatic Payment Enrollment: Some providers waive deposits if you set up autopay with a bank account or credit card. Reduces their risk and your paperwork.

Deposit Waivers for Low Income: Texas law prohibits deposits for customers receiving certain assistance programs. If you receive LIHEAP, CEAP, or SNAP, ask about deposit exemptions.

Check Multiple Providers: Credit requirements vary. If one provider demands $300 deposit, another might accept $100 or none.

Let's run the numbers on a typical Texas household using 1,000 kWh monthly:

Cost comparison (1,000 kWh/month):

Year 1 totals:
- Prepaid: $2,040
- Traditional (with deposit): $1,520 ($1,320 + $200 deposit)
- Savings with traditional: $520 in year one

Year 2+ savings: $720 annually (no deposit to pay again)

The Reality Check:
If you can't qualify for traditional service at all, prepaid is your only option. But if you can get traditional service with a deposit, the deposit usually pays for itself within 4-6 months through lower rates. Consider the deposit an investment in lower long-term costs.

Need power today? Here's how to speed up connection:

Same-Day Service Providers:
- Payless Power advertises same-day connections in many areas
- Most prepaid providers connect faster than traditional REPs
- Call early in the day for best same-day odds

Priority Connection Fees: Some providers offer priority service for $30-50 extra. Worth it if you're already without power.

Requirements for Fast Connection:
- Valid service address with working smart meter
- No switch hold on the meter (previous tenant issues)
- Payment method ready (card or bank account)
- ESI ID helps but isn't always required

What Slows Things Down:

Bottom line: If speed matters most, call Payless Power or another prepaid provider before noon on a weekday.

Prepaid electricity requires more attention than traditional plans. Here's how to avoid disconnection surprises:

Plan Exit: Switch when credit improves to save with traditional rates.

Set Up Balance Alerts: Most providers let you customize low-balance notifications. Set alerts at $20, $10, and $5 so you have time to add funds.

Track Usage Patterns: Learn your daily usage rate. If you use $5/day in summer, you know a $50 reload lasts about 10 days.

Know Disconnection Rules: In Texas, prepaid providers can disconnect without notice when balance hits $0. There's no grace period like traditional service. Stay ahead of your balance.

Plan Your Exit Strategy: If your credit improves, switch to traditional service for lower rates. Most prepaid plans have no contract, so you can leave anytime.