12 Cheapest Light Companies in Texas (2026 Ranked)

Texas has over 100 light companies competing for your business. That sounds like it should mean cheap rates for everyone, but here’s the reality: the cheapest plans come with conditions. Good credit. Long contracts. Specific usage levels. If you don’t meet those conditions, the “cheap” rate on the ad doesn’t apply to you.

This is an honest breakdown of the 12 cheapest light companies in Texas right now, what they actually charge, and who qualifies for those rates. Whether you have perfect credit or no credit at all, there’s an option here that works.

How We Ranked These Light Companies

Three things matter when comparing light companies in Texas:

1. Actual rate per kWh at 1,000 kWh usage. That’s the average Texas home. Advertised rates often assume 2,000 kWh to look cheaper. We use 1,000 because it’s realistic.
2. Total monthly cost. Some companies have low rates but high base charges or fees that inflate your bill.
3. Who can actually get that rate. A 9-cent plan that requires a 700 credit score doesn’t help you if your score is 550.

Rates change frequently. The numbers below reflect March 2026 market conditions in major Texas metro areas (Houston, Dallas-Fort Worth, Austin, San Antonio). Your exact rate depends on your zip code and the local delivery company (TDU) in your area.

The 12 Cheapest Light Companies in Texas

1. 4Change Energy

Rate range: 9-12 cents/kWh (fixed plans) Deposit policy: Credit check required. Deposit $0-$300 depending on credit. Contract: 12 and 24-month plans available Best for: Budget-conscious Texans with decent credit who want rock-bottom fixed rates

4Change Energy consistently posts some of the lowest fixed rates in the Texas market. Their 12-month plans regularly come in under 11 cents at 1,000 kWh, and they donate a portion of profits to Texas charities.

The catch: you need to pass a credit check. If your credit is solid, this is one of the cheapest options in the state. If it’s not, expect a deposit request or denial.

Monthly estimate at 1,000 kWh: $95-$125

Compare 4Change Energy plans

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2. Discount Power

Rate range: 9-12 cents/kWh (fixed plans) Deposit policy: Credit check required. May require deposit. Contract: 6, 12, and 24-month plans Best for: Texans who want cheap fixed rates with flexible contract lengths

Discount Power lives up to the name. They focus on no-frills, low-rate plans without the gimmicks. No free nights. No reward points. Just competitive pricing.

Their 24-month plans lock in rates that protect you through summer price spikes. If you qualify, the 6-month plan is a good way to test them out without a long commitment.

Monthly estimate at 1,000 kWh: $95-$125

Compare Discount Power plans

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3. Gexa Energy

Rate range: 10-13 cents/kWh (fixed plans) Deposit policy: Credit check required. Deposit varies. Contract: 12 and 24-month plans, plus green energy options Best for: Texans who want cheap rates with renewable energy options

Gexa Energy offers competitive rates with a twist: several of their plans include 100% renewable energy at rates that compete with conventional plans. If you care about green energy, Gexa lets you get it without paying a premium.

Their Saver plans are straightforward cheap options. Their Green plans add renewable energy certificates at little to no extra cost.

Monthly estimate at 1,000 kWh: $105-$135

Compare Gexa Energy plans

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4. Rhythm Energy

Rate range: 10-13 cents/kWh (fixed plans) Deposit policy: Credit check required. Low or no deposit for good credit. Contract: 12 and 24-month plans Best for: Texans who want a modern, no-hassle experience with competitive rates

Rhythm Energy is a newer company that’s grown fast by offering clean plans with transparent pricing. Their app and online dashboard are among the best in Texas, making it easy to track usage and costs in real time.

Rates are competitive with the market leaders. Not always the absolute cheapest, but close, and the customer experience is significantly better than most budget light companies.

Monthly estimate at 1,000 kWh: $105-$135

Compare Rhythm Energy plans

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5. Frontier Utilities

Rate range: 10-14 cents/kWh (fixed plans) Deposit policy: Credit check required. Flexible deposit options. Contract: Month-to-month and fixed-term plans Best for: Texans who want cheap rates without being locked into a long contract

Frontier Utilities offers a solid mix of fixed-rate and month-to-month plans. Their month-to-month options are among the cheapest no-contract plans in Texas, which matters if you’re not sure how long you’ll be at your current address.

They also offer Ridiculously Cheap plans (yes, that’s the actual product name) that hit aggressive price points on longer contracts.

Monthly estimate at 1,000 kWh: $105-$145

Compare Frontier Utilities plans

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6. TXU Energy

Rate range: 11-15 cents/kWh (fixed plans) Deposit policy: Credit check required. Deposit or prepaid options. Contract: 12 and 24-month plans, plus free nights/solar options Best for: Texans who want a big-name company with specialty plans (free nights, solar)

TXU Energy is the legacy light company in Texas. They’re not the cheapest on a straight rate comparison, but their Free Nights plan is genuinely useful if you can shift heavy usage (laundry, dishwasher, EV charging) to nighttime hours.

You pay a higher daytime rate in exchange for free power from 9 PM to 6 AM. For night owls and work-from-homers with flexible schedules, the total cost can beat the cheapest fixed-rate plans.

Monthly estimate at 1,000 kWh: $115-$155

Compare TXU Energy plans

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7. Reliant Energy

Rate range: 11-15 cents/kWh (fixed plans) Deposit policy: Credit check required. Deposit $0-$400. Contract: 12 and 24-month plans, plus weekly pricing options Best for: Texans who want reliable service, rewards, and flexible payment options

Reliant is one of the biggest light companies in Texas. Their rates aren’t the cheapest, but they offer perks: rewards programs, bill credits, and the Reliant app for real-time usage tracking.

Their Truly Free weekends plan gives you free power on Saturday and Sunday. For families who do most of their heavy usage on weekends, that can add up to real savings even at a higher base rate.

Monthly estimate at 1,000 kWh: $115-$155

Compare Reliant Energy plans

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8. Payless Power

Rate range: 14-17 cents/kWh (pay-as-you-go) Deposit policy: No deposit. No credit check. Contract: None. Pay-as-you-go, cancel anytime. Best for: Anyone who needs lights on TODAY with no credit check and no deposit

Payless Power is the biggest pay-as-you-go light company in Texas. Start for as little as $40. No credit check. No deposit. No contract. Your lights can be on in hours, not days.

The rate is higher than traditional plans. That’s the trade-off: you’re paying more per kWh for the convenience of zero barriers. But that startup cost isn’t a deposit. It goes directly toward your usage. And if you keep usage low, the monthly cost is manageable.

Payless Power is consistently the easiest path to getting your lights on when other companies have said no.

Monthly estimate at 1,000 kWh: $145-$175

Compare Payless Power plans

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9. Now Power

Rate range: 14-17 cents/kWh (pay-as-you-go) Deposit policy: No deposit. No credit check. Contract: None. Pay-as-you-go, cancel anytime. Best for: Texans who want a pay-as-you-go alternative with competitive prepaid rates

Now Power is another solid pay-as-you-go option. Start for about $50. Same deal as Payless: no credit check, no deposit, no contract. Lights on the same day in most cases.

Now Power sometimes has slightly better rates than Payless Power depending on your area, so it’s worth comparing both for your specific zip code. Their daily usage tracking helps you see exactly where your money goes.

Monthly estimate at 1,000 kWh: $145-$175

Compare Now Power plans

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10. Pogo Energy

Rate range: 14-18 cents/kWh (pay-as-you-go) Deposit policy: No deposit. No credit check. Contract: None. Day-to-day billing. Best for: Texans who want daily billing transparency and an easy-to-use app

Pogo Energy does pay-as-you-go with a focus on daily billing. You see what you spent each day, which makes it easier to track spending and adjust habits in real time.

Startup costs range from $30-$50. Rates can be slightly higher than Payless or Now Power, but the daily visibility helps many customers actually spend less overall because they can see the impact of their usage immediately.

Monthly estimate at 1,000 kWh: $145-$185

Compare Pogo Energy plans

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11. Direct Energy (now part of NRG)

Rate range: 11-14 cents/kWh (fixed plans) Deposit policy: Credit check required. Deposit varies. Contract: 12 and 24-month plans Best for: Texans who want a large, established company with straightforward plans

Direct Energy (now operating under NRG) has been in the Texas market for years. Their Live Brighter plans offer competitive fixed rates, and being part of NRG gives them financial stability.

Plans are mid-range on pricing. Not the cheapest, not the most expensive. Solid option if you want a no-surprises experience from a company that isn’t going anywhere.

Monthly estimate at 1,000 kWh: $115-$145

Compare Direct Energy plans

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12. Chariot Energy

Rate range: 10-13 cents/kWh (solar plans) Deposit policy: Credit check required. May require deposit. Contract: 12 and 24-month plans Best for: Texans who want 100% solar energy at competitive rates

Chariot Energy is a solar-only light company. Every plan is 100% solar. The surprising part: their rates are competitive with conventional plans. You can go green without paying a premium.

If environmental impact matters to you and you have the credit to qualify, Chariot is worth a serious look. Their rates often beat traditional companies while delivering 100% clean energy.

Monthly estimate at 1,000 kWh: $105-$135

Compare Chariot Energy plans

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Quick Comparison Table

Light Company	Rate Range (per kWh)	Credit Check	Deposit	Contract	Monthly Est. (1,000 kWh)
4Change Energy	9-12 cents	Yes	$0-$300	12-24 months	$95-$125
Discount Power	9-12 cents	Yes	Varies	6-24 months	$95-$125
Gexa Energy	10-13 cents	Yes	Varies	12-24 months	$105-$135
Rhythm Energy	10-13 cents	Yes	Low/none	12-24 months	$105-$135
Chariot Energy	10-13 cents	Yes	Varies	12-24 months	$105-$135
Frontier Utilities	10-14 cents	Yes	Flexible	MTM + fixed	$105-$145
Direct Energy	11-14 cents	Yes	Varies	12-24 months	$115-$145
TXU Energy	11-15 cents	Yes	Varies	12-24 months	$115-$155
Reliant Energy	11-15 cents	Yes	$0-$400	12-24 months	$115-$155
Payless Power	14-17 cents	No	$0	None	$145-$175
Now Power	14-17 cents	No	$0	None	$145-$175
Pogo Energy	14-18 cents	No	$0	None	$145-$185

The Real Talk: Why Cheap Rates Have Conditions

Here’s what most comparison sites won’t tell you. The cheapest rates in Texas (under 11 cents) come with strings attached:

You need good credit. Every traditional light company runs a credit check. Score above 650? You’ll get the advertised rate with no deposit. Score below 600? You’ll either get denied, quoted a $200-$400 deposit, or steered toward a more expensive plan.

You need a contract. The cheapest rates are on 12 and 24-month plans. Month-to-month rates are 2-5 cents higher. That contract protects your rate from summer spikes, but it also means an early termination fee ($100-$200) if you leave early.

You need the right usage. Advertised rates are calculated at specific usage tiers. Many companies show their “as low as” rate at 2,000 kWh. If you only use 1,000 kWh, your effective rate is higher because fixed base charges get spread over fewer units.

This isn’t a scam. It’s how the market works. But it means the cheapest plan for your neighbor might not be the cheapest plan for you.

What If Credit Is a Challenge?

This is where it gets real. If other light companies have turned you down or quoted you a $300 deposit, you have two paths.

Path 1: Find a Traditional Plan With No Deposit

Every light company sets its own credit threshold. One company might require a deposit at 580 credit, while another approves you at 550. The problem is checking them one by one. Each application hits your credit report, you sit on hold for an hour, and you might still get told no.

That’s what we built NoDepositLights for. We check with multiple light companies at once to find which ones will take you without a deposit. Many people with credit challenges find a $0 deposit traditional plan through this process. The rates are the same regular rates listed above. No markup. No special “no-credit-check” pricing.

It doesn’t work for everyone. Some credit situations are too far gone for any traditional company. But it’s worth trying before defaulting to the higher-cost prepaid option.

Check if you qualify for a no-deposit traditional plan

Path 2: Pay-As-You-Go (Always Available)

If traditional plans don’t work out, pay-as-you-go is always there. No credit check. No deposit. No contract. Lights on today.

Yes, the rates are higher (14-18 cents vs. 9-13 cents on traditional plans). That can mean $40-$60 more per month on the same usage. But here’s what matters: the $40-$75 you pay to start isn’t a deposit. It goes directly toward your usage. You’re prepaying for power, not giving the company a security deposit they hold for 12 months.

The best pay-as-you-go companies in Texas:

• Payless Power - Lowest startup cost (~$40), biggest prepaid company in Texas
• Now Power - Competitive rates, good daily tracking
• Pogo Energy - Best app experience, daily billing transparency

Compare all no-deposit plans

How to Actually Get the Cheapest Rate for Your Situation

Forget browsing 50 plans. Here’s the decision tree:

Step 1: Know your credit situation. If your credit score is above 620, start with traditional companies. You’ll likely qualify for rates under 13 cents with no deposit. If your score is below 580, skip to Step 3.

Step 2: Compare fixed-rate plans at your actual usage. Don’t compare advertised rates. Compare total monthly cost at your usage level. A plan at 10 cents with a $10/month base charge costs the same as a plan at 11 cents with no base charge at 1,000 kWh. Use the Electricity Facts Label (EFL) to see the real cost at 500, 1,000, and 2,000 kWh.

Step 3: If credit is an issue, try the no-deposit route first. Before settling for prepaid rates, see if a traditional company will take you without a deposit. Multiple companies checked at once, one application. If someone says yes, you get traditional rates, saving $40-$60/month compared to prepaid.

Step 4: If all else fails, go pay-as-you-go. Pick the prepaid company with the best rate in your zip code. Payless Power and Now Power are usually the cheapest. Start for $40-$50, get your lights on today, and consider switching to a traditional plan once your credit improves.

Rates Change. Here’s How to Stay Ahead.

The Texas light market is competitive, which means rates shift every month. A company that’s cheapest today might not be cheapest in six months. Here’s how to protect yourself:

Lock in a fixed rate before summer. Texas rates spike June through September because everyone’s running AC and wholesale power costs jump. A 12-month fixed plan signed in March or April locks you in at lower rates through the expensive months.

Set a calendar reminder before your contract ends. Most contracts auto-renew at a much higher variable rate. When your contract expires, shop again. Switching is free in Texas and takes 1-2 business days.

Monitor your usage, not just your rate. The cheapest rate doesn’t matter if you’re using twice the power you need. A 12-cent rate at 800 kWh ($96/month) beats a 10-cent rate at 1,200 kWh ($120/month). Simple changes like adjusting your thermostat 2 degrees save 5-10% on your bill.

Bottom Line

The cheapest light company in Texas depends on your credit, your usage, and your willingness to sign a contract. If you have good credit: 4Change Energy, Discount Power, and Gexa Energy consistently offer the lowest rates. If you need lights with no credit check: Payless Power and Now Power get you connected for $40-$50 with no deposit.

If you’re somewhere in between, with credit that’s not perfect but not terrible, start here. There’s a good chance you can get traditional rates without a deposit. And if that doesn’t work, prepaid is always waiting with the lights on.