The Ministry of New and Renewable Energy (MNRE) has formalized the payment release mechanism for the Utility Led Aggregation (ULA) Model under the PM-Surya Ghar: Muft Bijli Yojana (PMSG: MBY). This Office Memorandum, dated October 6, 2025, builds upon the operational guidelines previously issued for the ULA model.
The new process establishes strict rules for the disbursement of Central Financial Assistance (CFA), prioritizing transparency and ensuring funds are directly linked to completed work.
Payment Release Mechanism
The standardized process for releasing CFA for ULA projects involves the following key steps:
The CFA will be released in a single tranche, strictly contingent upon the successful physical installation, inspection, and commissioning of the rooftop solar (RTS) systems. No advance release of CFA shall be permitted.
National Portal Process:
- The State, Utility, or Implementing Agency must issue a work order or execution agreement to the selected vendor.
- The Implementing Agency is responsible for uploading the necessary consumer installation information and verified vendor bank account details onto the National Portal.
- Once physical verification and commissioning are complete, the Implementing Agency must use the “ULA Redeem” option to initiate CFA disbursement, specifying details on a consumer-wise and vendor-wise basis.
The National Program Implementation Agency (NPIA), which is REC Ltd., will verify the installation reports and vendor bank account details uploaded on the portal. Following successful verification, CFA will be disbursed directly to the ULA vendor’s bank account.
A notification will be automatically sent to the concerned State/Utility/Implementing Agency, providing complete visibility of the amount released to each ULA vendor.
Any modification to a vendor’s bank account details must be routed through the NPIA for verification and record updates.
Applicability and Directives
This new, unified payment mechanism will apply to all proposals under the ULA model, covering both Utility Owned (EPC and sub-RESCO) and Consumer Owned models.
The MNRE has directed all ULA Implementing Agencies and State/UT entities to adhere to this prescribed process without deviation to ensure the transparent and timely utilization of CFA under the PMSG: MBY ULA model. The MNRE will assign the necessary funds in advance to the NPIA (REC) under a designated head for seamless payment tracking.