Solar Firm Ordered to Repay $230,000 for Excess Electricity Production
Tzabar Solar, an energy company, has been instructed by the Israel Electric Authority (IEA) to refund approximately 850,000 shekels (about $230,000) due to overproduction of electricity at one of its facilities. An IEA audit revealed that the facility generated power at a higher capacity than authorized, leading to excess payments to the company. The refund includes all overpayments since the facility's capacity was altered, plus interest.
The findings emerged during a proactive inspection by the IEA, which examined over 160 production facilities with capacities under 16 megawatts. These facilities were granted exemptions from ongoing licensing requirements as part of a regulatory burden reduction initiative for developers.
During the inspection, a discrepancy in the authorized capacity was found at one of Tzabar Solar's facilities. The company admitted that in 2021, it replaced over 2,300 faulty solar panels with new ones totaling 567 kilowatts without prior approval or reporting to the IEA. These new panels increased the facility's electricity output and, consequently, the payments it received.
The IEA explained that while natural degradation reduces panel efficiency over time, the replacement panels in Tzabar Solar's case boosted the facility's generation capacity beyond its licensed limits. This resulted in payments for electricity produced in excess of the permitted amount.
Following these findings, the IEA's plenum approved an adjustment to the facility's tariff and mandated the repayment of all excess amounts received since the capacity change. The IEA views this inspection as a test case for its policy of reducing regulatory requirements while strengthening post-facto oversight and enforcement, emphasizing that regulatory leniency does not permit deviations from approved capacities or conditions. The authority stated it will continue to ensure tariffs are paid only for electricity produced according to permits, to prevent financial advantages for rule-breaking producers and safeguard public funds.
