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What Is No Deposit Electricity? And Frequently Asked Questions

December 7, 2020
by dmirza
no deposit electricity

Not all electricity providers ask for a security deposit upfront. It is possible to get a reliable power supply without paying a deposit.

Such energy plans are known as no-deposit electricity plans. But that is not the only criterion that sets these plans apart – there are plenty more benefits.

What Is “No Deposit” Electricity?

No-deposit electricity or prepaid electricity plans are those that allow you to get a connection without tedious credit checks, long contract terms, and upfront deposits.

You can create your account with a minimum balance and pay for your electricity usage from this credit. The application and approval processes are quick and straightforward, and you can get the power turned on within hours.

What Is Prepaid Electricity?

Prepaid electricity plans allow you to purchase energy and pay the bill before you use it. Paying in advance may be better for individuals who struggle to keep their energy spending down. Electricity customers with a low credit score or those who have moved recently can get a quick connection with prepayment plans.

What Are the Benefits of No-Deposit Electricity?

No deposit electricity plans:

Carry no long-term commitment. You can switch to another electricity plan whenever you want.

Pay-as-you-go. There is no high energy bill waiting for you at the end of the month. You add money to your account from your smartphone and top up the balance.

Have no termination fee. Since there is no contract, canceling prepaid electricity plans is possible at any time without penalty.

Variable electricity prices. Since the energy rates may vary month to month, many electric companies offer discount rates on prepaid plans.

Same day power. In the lack of hard credit checks, activating your electric connection will be easy. You can get the lights on the same day.

Who Can Avail of No-Deposit Electricity Plans?

Light companies may not ask customers with low credit scores, low incomes, seniors, and other situations for a deposit. You can ask for discount rates on prepaid plans.

You can qualify for no-deposit electricity plans by producing proper documentation, such as:

  • A government agency’s certification that you had been a victim of family violence.
  • An authorized letter that proves you are in a low-income group.
  • Letter of credit from your previous electric company confirming that you didn’t have two or more late payments in the past 12 months.
  • Government-issued military ID to prove that you are a reservist military veteran or on active duty.
  • Relevant paperwork showing that you are 65 years of age or older. E.g., driver’s license, passport, state-issued ID card, etc.
  • A relevant government entity’s certification proving your medical indigency.

What to Consider Before Picking a No-Deposit Electricity Plan?

Although you can get discount rates on prepaid plans, more often than not, the electricity prices will be higher than regular plans.

Sometimes, no-deposit electricity plans may carry hidden costs that give you billing shocks. For this reason, it is vital to understand the Terms of Service and Electricity Facts Label documents.

Some websites may also provide gimmick rates that fool customers. Hence, find trustworthy prepaid plans using our platform. We carefully vet energy plans from reputed electric companies.

Signing up for no-deposit electricity plans is easy:

  1. Enter your Zip code and view available plans in your service area.
  2. Compare electricity rates and enroll.
  3. Credit your account with a minimum initial balance and get same-day electricity.
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