Residential Electricity - Pay No Deposit

Gabe C
Jan 24, 2020
3 min read

Updated: Oct 17

Residential Electricity - Pay No Deposit

Electricity service for our house is very necessary. These days there are many electricity companies that they offer energy service with free nights or that we do not pay for energy on weekends. Of course, they are good promotions and are very attractive. Even so, we must know how to compare and choose the right residential electricity plan for each of us. The reason for this is that not everyone uses electricity at home in the same way.

Now, all electric companies offering a residential electricity contract will do a credit check. The reason for this is that the customer will use the energy in their home and after a month they will pay for it. A customer can rack up hundreds of dollars in a month of electric service. Electricity companies have to make sure that the customer will pay for the electricity service and have the customer's personal information, such as social security number, then you can be more confident that the customer will pay their electricity bill.

Residential electricity without credit

In the event that the customer does not have enough credit or cannot provide any way to check the credit, then the electric company will find a way to ensure that the customer does not leave an unpayable bill. Simply put, without credit, a deposit will be charged. It is the hook, so the electric company makes sure that the customer thinks twice before not paying their electricity bill or changing electricity companies. Residential electricity pay no deposit.

Now, here we have the solution if you do not have enough credit or do not want to pay a deposit to connect your electricity service.

Residential electricity does not pay a deposit with prepaid energy services

Use your money wisely. With prepaid electricity you do not have to pay a deposit. As the name of the product says, PREPAID ELECTRICITY, the customer is paying for electricity in advance. As we do with the gasoline we put in our car, we always pay for it and then use it. It is the same idea as prepaid home energy.

Residential electric companies that charge a deposit keep that deposit and rarely return it to the customer. With prepaid electricity, the money charged to start electrical service is used to purchase electricity. The energy that will be used in the coming days is purchased.

The difference between paying a deposit to connect the electricity in your home.

Let's say a customer purchases $100 of prepaid energy, and the rate is $0.12 (12 cents) so the customer is purchasing approximately 850 kilowatts of electricity. Conservatively, an apartment can consume about 20 kilowatts a day, so $100 can last about 43 days. So in this example, the client invested $100.

Now, if the customer does not have credit, a deposit of $250 is normally paid. If the electricity contract rate averages 0.10 (10 cents) then the difference is approximately 150 kilowatts ($100 X 0.10/kw = 1000 kw). This costs about $15.

In conclusion. I will calculate the difference between $15 per month difference between prepaid monthly electricity payments and a $250 deposit. It would be $250 to start the electricity service with a deposit, we divide it by the difference which is $15, this will give us the number of months to recover the investment of $250 of the electricity deposit. $250 / $15 = 16.7 months. This means that the deposit would be recovered in more than 16 months.

Choose residential energy without a deposit, if you do not have credit choose prepaid energy. It suits you in every possible way. Believe me, I use prepaid electricity and it helps me bake every month.

Measure your efforts to save electricity with prepaid electricity.

No Deposit Electricity