Pension Credit and Solar Panels

Joss_Tom

Does anyone know if the income from solar panels is counted as income for the purpose of claiming Pension Credit? The advisors at the Pensions Agency don't seem to know!

The_Green_Man_2

Joss_Tom wrote: »

Does anyone know if the income from solar panels is counted as income for the purpose of claiming Pension Credit? The advisors at the Pensions Agency don't seem to know!

Do you mean the FiTs payments from having your own solar panels or the reduction in your bills from having rent-a-roof panels?

mania112

I would assume not, simply because it hasn't been recognised as an acceptable income (they haven't thought about adding it in to the system yet!).

But I have no idea, really.

Great question though

Ravenshade

Last I checked it wasn't. However it *is* income and you 'should' declare it.

Baalmaiden

As the FIT payments are tax exempt I don't think you have to include them as income for tax credits, but I'm not sure about pension credit.

The_Green_Man_2

It would be interesting to know how someone in receipt of pensions credit because they are on the breadline can afford to install solar panels in the first place.

Joss_Tom

I did mean the FITs payments. I did declare it on my application, that's how I found out the Pensions Agency don't know. They asked me to find out! As to GM's query, I was a sole trader, self employed, had them fitted several years ago as my savings were getting no interest in the bank. Now retired for health reasons, I'm not old enough to receive state pension and have no income at all.

wakeupalarm

The tax free status doesn't make a difference you still have to declare it as income in the same way as you have to declare tax free ISA's, Savings Certificates or Premium bonds.

If you had them installed several years ago you would not be getting any FIT payments as they only started in April 2010.

System

But it isn't income, or at least only a bit of it is. It is mostly repayment of capital.

If you invest £10,000 in an ISA, you get an income, you still own the £10,000.
If you put £10,000 into solar panels you have lost the £10,000. But you get a gradual return of your money over the next 20 years.
Think of it as granting yourself a mortgage.

Imagine you lent me £10,000 interest free, which I repaid at £1000 a year for 10 years. That's not income. You'd be mad to spend it on ordinary expenses.