How much deposit do utilities require?
Utility deposits are negotiable far more often than people realize. Here’s the actual math, plus the three ways to get to zero.
Deposit ranges by utility (Texas, 2026)
- Electricity: $0 with 640+ FICO and a soft pull. $200–$400 below that threshold or with no credit history.
- Gas: $50–$150. Typically waived with autopay enrollment.
- Water/sewer: $50–$200 set by your city’s ordinance. Houston runs $115; Austin $150; Dallas $50.
- Trash: $0 if bundled with water. Private haulers in rural areas may charge a 1-month service deposit.
- Internet: $0 with autopay. $50–$100 equipment fee (modem/router) is separate and usually refundable when you return the equipment.
Three ways to get to zero
- Letter of Credit. Ask your previous provider for a letter showing 12 months of on-time payments. Most REPs accept it as a deposit waiver. Free; takes 1–3 business days.
- Autopay enrollment. Many REPs and gas utilities waive the deposit if you enroll in autopay at signup. You can disable autopay later if you prefer manual billing.
- Prepaid plan. No deposit at all. You prepay for power and the meter disconnects automatically when your balance hits zero. Higher per-kWh rate is the trade-off.
When the deposit math actually matters
For a typical Texas household using 1,000 kWh per month, a $300 deposit on a 12¢/kWh postpaid plan beats a 14¢/kWh prepaid plan within 18–24 months. Below 18 months — for example, a 1-year lease — prepaid is often cheaper lifetime even with the higher rate.
Frequently asked questions
How much is a typical electricity deposit in Texas?
$0 with a 640+ FICO and a soft credit pull. $200–$400 if your credit is thin or below 640. Deposits are refunded after 12 months of on-time payments or applied to your final bill at move-out.
How can I avoid a utility deposit?
Three options: (1) ask your previous provider for a Letter of Credit/Guarantee showing 12 months on-time payments, (2) sign up with autopay enabled (waives deposit at many REPs), or (3) choose a prepaid plan, which has no deposit by design.
When do I get my utility deposit back?
After 12 months of on-time payments most providers refund automatically as a bill credit. If you move out before 12 months, the deposit is applied to your final bill and any remainder is mailed to your forwarding address.
Is a prepaid electricity plan cheaper than paying a deposit?
Sometimes. Prepaid rates run 10–20% higher per kWh, so on a typical 1,000 kWh/month bill you'd pay $10–$25 extra each month. If your deposit would be $300, prepaid breaks even after about 12–24 months.
Images via Wikimedia Commons (My Savings by Jeff Belmonte, CC BY 2.0; Magic Calculator, CC BY 2.0; Residential service entrance, CC BY-SA 4.0).