Texas electricity with no deposit: 4 legal ways to skip it
By the kWhCompare Editorial Team · Updated September 29, 2026 · 3 min read
Setting up electricity in Texas can come with a surprise: a deposit of a few hundred dollars before your lights come on. You often don't have to pay it. State rules give you several ways around it, and some of them cost nothing at all.
Why providers ask for a deposit
Electricity is billed after you use it, so a new provider is effectively lending you a month of power. If your credit history is thin or low, most providers will ask for a security deposit to cover that risk. The Public Utility Commission of Texas (PUCT) sets the rules on how much they can charge and who they must exempt.
The deposit can't exceed one-fifth of your estimated annual bill or the sum of the next two estimated monthly bills, whichever is greater. In practice, that usually means a few hundred dollars. Deposits earn interest, and providers refund them, typically after 12 months of on-time payments or when you close the account.
Way 1: qualify on your credit or payment history
Providers run a credit check when you sign up, normally a soft check that doesn't affect your score. You can also establish satisfactory credit by showing that during the past two years you were a customer of any Texas provider or utility, you're not behind on that account, and you weren't late more than once in your last 12 months of service.
Tip: ask your previous provider for a letter of credit (a payment history letter) before you move. It's free, and it can replace a credit score entirely.
Way 2: a state deposit waiver
PUCT rules require providers to waive the deposit for two groups:
- Customers 65 or older who aren't currently behind on any electric account.
- Victims of family violence, certified by a family violence center, medical staff, law enforcement, a prosecutor's office or other listed agencies, using the Texas Council on Family Violence certification letter.
These waivers don't depend on your credit score. Mention them when you sign up; the provider must accept valid documentation.
Way 3: a letter of guarantee
Some providers accept a written guarantee from another customer with good credit who agrees to pay if you don't. It's less common, and the guarantor takes on real risk, so treat it as a fallback.
Way 4: a prepaid plan
Prepaid, or "pay as you go," plans don't require a deposit or credit check. You load money onto the account and your usage draws it down, with daily balance alerts by text or email. With a smart meter, service can often start the same day.
The trade-off is price. Prepaid plans often cost more per kWh than the best postpaid plans, and if your balance runs out, your power can be disconnected quickly. They suit people who want control over spending or who can't qualify any other way, but compare the rate carefully.
Which option is best?
| Option | Cost | Best for |
|---|---|---|
| Credit or payment history | Free | Anyone with a record of on-time bills |
| 65+ or family violence waiver | Free | Those who qualify |
| Letter of guarantee | Free, but risky for the guarantor | When a trusted person can vouch for you |
| Prepaid plan | Often a higher rate | No credit, or a preference for pay-as-you-go |
| Pay the deposit | Refundable, with interest | When the cheapest plan requires it |
Don't let "no deposit" cost you more
A refundable deposit isn't lost money. Over a year, a cheaper postpaid plan with a deposit can easily beat a more expensive no-deposit plan. Compare the average price at your usage on each plan's Electricity Facts Label, and use the calculator on your city page to see the monthly difference.
Starting service at a new home
Have three things ready: your new address, your move-in date and the address's ESI ID (any provider can find it for you). Sign up a week or two before you move so service starts on time, and ask about the waivers above before you agree to pay anything.
Have it ready when you sign up for service.
Frequently asked questions
How much is an electricity deposit in Texas?
Usually a few hundred dollars. By PUCT rule it can't exceed one-fifth of your estimated annual bill or two estimated monthly bills, whichever is greater.
Do seniors have to pay an electricity deposit in Texas?
No. Customers 65 or older who aren't behind on any electric account qualify for a deposit waiver under PUCT rules.
Do I get my electricity deposit back?
Yes, with interest. It's usually refunded after 12 consecutive on-time payments or applied to your final bill when you close the account.
Are no-deposit electricity plans more expensive?
Often, especially prepaid plans. Compare the price at your usage: a cheaper plan with a refundable deposit can cost less over a year.
Sources
- Public Utility Commission of Texas, Substantive Rule §25.478, Credit Requirements and Deposits (puc.texas.gov)
- Public Utility Commission of Texas, Substantive Rule §25.498, Prepaid Service (puc.texas.gov)
Figures are checked against these sources when each guide is updated. See how we research and calculate. This guide is for general information and isn't financial advice.