The Ministry of New and Renewable Energy (MNRE) has issued a new Office Memorandum on October 6, 2025, outlining the detailed mechanism for releasing funds under the Utility Led Aggregation (ULA) Model of the PM Surya Ghar: Muft Bijli Yojana. This new system aims to ensure transparency and timely disbursement of the Central Financial Assistance (CFA) for rooftop solar projects implemented across the country.
According to the memorandum, the CFA will now be released in a single installment after the successful physical installation, inspection, and final commissioning of the rooftop solar systems. No advance release of funds will be allowed, reinforcing MNRE’s policy that payments should only be made after project completion. This change is expected to bring better financial discipline and accountability among all stakeholders involved in rooftop solar implementation.
The entire fund release process will be managed through the National Portal. The procedure requires the State, Utility, or Implementing Agency to first issue a work order or execution agreement to the selected vendor. After this, the agency must upload all relevant consumer installation details along with the verified bank account information of the vendor on the portal. Once the rooftop system is installed and commissioned, the Implementing Agency must use the “ULA Redeem” option on the portal to initiate the CFA disbursement. This request must specify all necessary details of the payment, categorized consumer-wise and vendor-wise.
The National Program Implementation Agency (NPIA), which has been designated as REC, will play a key role in the process. The NPIA will verify the uploaded installation reports and vendor bank details before releasing the CFA. Once the verification is complete, the funds will be directly transferred to the vendor’s bank account. MNRE will allocate funds in advance to the NPIA under a designated head to enable quick tracking and disbursement of payments. The Implementing Agency and State or Utility will also receive notifications for complete transparency regarding the payments made to each vendor.
In case of any change in a vendor’s bank account details, the updates must be routed through the NPIA for verification and record correction. The MNRE has made it clear that this standardized payment mechanism will apply uniformly to all ULA proposals, including both Utility Owned and Consumer Owned models. All implementing agencies and state authorities have been directed to strictly follow this new process to ensure the efficient and transparent use of public funds under the rooftop solar program.
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