Prepaid Electricity

Get more control over your energy bill

For business

What is prepaid electricity?

Prepaid electricity, sometimes known as pay-as-you-go electricity, is a type of electric plan where customers pay for electricity they need before they actually use it.

Prepaid electric plans allow customers to have more control over what they pay, since they only pay for as much electricity as they need. Such plans are similar to pay-as-you-go cellphone plans. There are no contracts, no credit checks, and no deposits needed.

Prepaid electricity often is a good option for customers with less-than-perfect credit. One example where it could help: Someone who is formerly homeless and is trying to sign up for power without huge upfront costs.

If you think prepaid energy is the right choice for you, enter your ZIP code above to shop prepaid plans from top retail electric providers. If you still need to know more, let’s discuss the advantages and disadvantages of a prepaid plan to determine whether one is best for you.

Advantages and disadvantages of prepaid electricity plans

When considering pay-as-you-go electricity plans, there are certain factors to weigh. These plans are great if you don’t want to pay a deposit or have bad credit. They allow you to know in advance what you owe and manage usage as the month progresses.

But there are also some downsides. First, you have to pay in advance. If you’re already worried about paying a deposit, this might not be any better. You also must keep a minimum account balance. If you frequently find yourself needing more electricity than you paid for, this could become a problem.

In addition, while prepaid electricity plans don’t include early termination fees to keep you from switching before a contract ends, rates often are higher than traditional plans.

However, the plans are beneficial to many because they don’t tie up funds in a huge deposit. Customers for whom money is tight, such as the Texas residents who recently have been homeless, can manage their use to keep costs down.

Prepaid electricity providers

Many retail electric providers (REPs) in Texas offer pay-as-you-go electricity alongside their standard contracts, including Payless Power, and First Choice Power. To see prepaid options in your area, enter your ZIP code above. We’ll show you today’s best rates to help you find the prepaid plan that works for you.

Prepaid electricity reviews

Reviewing providers based solely on prepaid plans is difficult, as many REPs offer both prepaid and postpaid options. However, we’ve evaluated some of the top REPs in Texas so you can be sure you’re getting reliable service, regardless of which option you choose.

To find reviews for a specific provider, we recommend consulting the Better Business Bureau, which has recent ratings and reviews on a majority of top electricity providers.

More information about pay-as-you-go electricity

If you’re still positive whether prepaid electricity is the correct choice, consult our energy buying guide to compare it with other plan options. If you’d like to speak with one of our energy experts, call the number on this page and you’ll be steered in the right direction.

Updated: 10/12/2020