MNRE sets strict payment rules for PM Surya Ghar ULA rooftop solar scheme
Author: PPD Team Date: October 9, 2025
The Ministry of New and Renewable Energy (MNRE) has issued a detailed payment release procedure for the Utility Led Aggregation (ULA) model under the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY).
The Office Memorandum dated October 6, 2025, specifies that Central Financial Assistance (CFA) will be disbursed only after verification of installation and commissioning, with no advance payments allowed.
Under the new process, the State, Utility, or Implementing Agency must first issue a work order or execution agreement to the vendor and upload verified consumer and vendor details to the National Portal. After installation and physical verification, the agency uses the portal’s “ULA Redeem” function to trigger CFA release, specifying payment details for each consumer and vendor.
The National Program Implementation Agency (NPIA), REC Ltd., will confirm installation reports and vendor bank accounts before releasing CFA directly to the vendor. Any changes to bank details must be verified by NPIA to maintain accuracy and security.
The mechanism applies uniformly across all ULA proposals, including Utility Owned (EPC, sub-RESCO) and Consumer Owned models. MNRE will pre-allocate funds to NPIA to ensure timely payments. The memorandum, approved by the Minister for New and Renewable Energy, has been circulated to senior officials and Discom heads for immediate implementation.
