Cheapest No-Deposit Light Company in Texas (2026)

Every cheap light company in Texas with no deposit says they’re the cheapest. They’re all lying, kind of. Because “cheapest” depends on how much you use, where you live, and whether you’re comparing startup costs or monthly costs or total cost over time. If you’re looking for affordable lights with no deposit and no down payment, the real answer takes about five minutes of math.

Let me break down the actual numbers so you can compare for yourself.

Startup Costs: What It Takes to Get Your Lights On

This is the first number most people care about. You need lights today. How much cash do you need right now?

Here’s what the major no-deposit prepaid light companies charge to get started (these are typical minimums, and they can change):

Company	Minimum to Start	Connection Fee	Total Day-One Cost
Payless Power	$40 balance	$0	~$40
Frontier Utilities	$49 balance	$0	~$49
Now Power	$50 balance	$0	~$50
Acacia Energy	$50 balance	$0	~$50
Direct Energy (prepaid)	$75 balance	$0	~$75

The balance you put down isn’t a deposit — there’s no down payment in the traditional sense. It’s credit on your account that gets used up as you consume power. Think of it like putting gas in the car. You’re paying for what you’ll use, not giving the company money they hold onto. Under PUCT §25.498, prepaid plans in Texas cannot require a traditional deposit.

Payless Power tends to have the lowest startup cost at around $40. But the cheapest to start isn’t always the cheapest to run.

Monthly Costs: Where It Actually Matters

Startup cost is a one-time thing. Your monthly cost is what you’ll pay month-to-month for the next 6, 12, or 24 months. This is where you need to pay attention.

Monthly billing on prepaid depends on two things:

Your rate (what the company charges per unit of power)
Your usage (how much power you actually use)

You can’t control #1 much once you’ve signed up. You can control #2.

Here’s a rough comparison at 1,000 units of monthly usage (average Texas home):

Company	Approximate Monthly Cost (1,000 units)
Payless Power	$130-$160
Frontier Utilities	$120-$150
Now Power	$130-$155
Acacia Energy	$125-$150
Direct Energy (prepaid)	$140-$170

These ranges exist because rates change, and because your specific area (which transmission company serves you) affects the delivery charges. If you’re looking for an affordable light company with low rates, pay attention to these monthly numbers more than the startup cost.

For comparison, a traditional fixed-rate plan for someone with good credit might run $80-$120/month for the same usage. Prepaid costs more per unit. That’s the trade-off for no credit check and no deposit. Read our prepaid vs traditional comparison for the full breakdown.

”Cheapest” Isn’t Just About the Rate

A company can have a low advertised rate but hit you with fees that change the math:

Watch for:

Daily service fees. Some companies charge $0.50-$1.50/day just for having an account, on top of your usage charges. Over a month, that’s $15-$45 before you’ve even turned on a light.
Minimum balance requirements. If a company requires you to maintain a $20 minimum balance at all times, that’s $20 of your money you can’t actually use.
Payment processing fees. Adding funds by credit card sometimes carries a $1-$3 fee. If you’re adding $20 every few days, those fees add up.
Reconnection processes. If your balance hits zero, some companies reconnect faster than others. A company that takes 4 hours to reconnect vs one that takes 30 minutes might matter to you.

How to Actually Find the Cheapest Option for You

The cheapest company depends on your specific situation. Here’s how to figure it out:

Step 1: Enter your ZIP code. Different companies serve different areas. Enter your ZIP at NoDepositLights.com to see who’s actually available at your address.

Step 2: Look at the total monthly cost, not just the rate. Our results show estimated monthly costs based on typical usage, including fees. That’s the number that matters.

Step 3: Consider your usage. If you live in a small apartment and keep the thermostat at 78, you might use 500-800 units/month. A house with the AC blasting might hit 1,500-2,000. The per-unit rate matters more when usage is high.

Step 4: Factor in startup cost only if cash is tight right now. If you have $40 but not $75, that narrows your options regardless of monthly cost. Get your lights on first, worry about cost later.

What About No-Deposit Traditional Plans?

Here’s something worth knowing: “no deposit” doesn’t automatically mean “prepaid.” Some traditional light companies will approve you for a post-paid plan with no deposit, even if your credit isn’t perfect. Under PUCT §25.24, deposit amounts are capped and companies must offer alternatives like a letter of credit or surety bond. Different companies have different credit thresholds.

Company A might want a $400 deposit from you. Company B might approve you zero down. Same credit score, completely different outcome.

Traditional plans almost always have lower monthly rates than prepaid. If you can get approved for one with no deposit and no down payment, that’s probably your most affordable option overall.

Use our deposit checker to see if any traditional companies will approve you without a deposit. If the answer is yes, that beats prepaid on monthly cost almost every time.

The “Cheapest Over Time” Strategy

If you’re thinking beyond this month, here’s the play that saves the most money long-term:

Start with the cheapest prepaid plan you can find. Get your lights on. Payless Power at $40 is usually the lowest barrier to entry.
Pay on time for 12 months. Don’t let your balance hit zero. This builds a track record.
Get a letter of credit. After 12 months, your prepaid company can confirm you’ve been a reliable customer.
Switch to a fixed-rate traditional plan. Use the letter of credit to skip the deposit. Your monthly cost drops from $130-$160 to potentially $80-$110.

We’ve got a whole guide on this: the path from prepaid to traditional. It’s the single most effective way to lower your long-term light bill.

The Bottom Line

If you need lights on today with the least cash possible, Payless Power at around $40 to start is hard to beat. If you can afford a slightly higher startup cost, compare the monthly rates because a cheaper monthly cost saves you more over time than a cheap startup.

But don’t overthink it. The difference between prepaid companies is maybe $20-$30/month. The difference between prepaid and a traditional plan you qualify for could be $40-$60/month. Focus on getting your lights on now, then work toward the traditional plan switch.

Enter your ZIP at NoDepositLights.com to see every option available at your address, ranked by actual cost.

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This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).