Clearer pension rules for household solar energy panels
The Federal Government has clarified the way feed-in tariffs from household solar panels are assessed for the purposes of the pension income test.
Feed-in tariffs that are paid to pensioners as a credit on an electricity bill will not be assessed as income under the pension income test.
The use of credits to reduce the total of a pensioner’s electricity bill is the way most state and territory feed-in tariff schemes work.
Power sold back to the grid in return for cash, cheque or a direct deposit is counted as income for social security purposes.
Single pensioners are able to earn up to $142 a fortnight without affecting the amount of pension they receive and couples combined can earn up to $248 a fortnight without affecting the amount of pension they receive.
When cash payments from feed-in tariffs are reported to Centrelink they will be assessed as income over a 12 month period.
For example, if a pensioner receives a cheque from their electricity company for $260 it would be counted as $10 of income per fortnight over 26 fortnights.
The Federal, state and territory governments already offer assistance with the installation costs of solar panels and that assistance is not assessed for the income test.
Pensioners should contact Centrelink to discuss their particular circumstances.
