MNRE Notifies CFA Release Mechanism Under ULA Model of PM Surya Ghar Yojana
The Ministry of New and Renewable Energy has outlined a new payment release process under the Utility Led Aggregation (ULA) model of the PM Surya Ghar Muft Bijli Yojana, mandating that subsidies be released only after the successful installation and commissioning of rooftop solar systems.
October 09, 2025. By Mrinmoy Dey
According to a notification issued by MNRE, no advance release of CFA will be permitted. The entire subsidy amount will be disbursed in a single tranche, strictly tied to the completion of physical installation, inspection, and commissioning of the rooftop solar (RTS) systems.
Under the new mechanism, the concerned State, utility, or implementing agency must issue a work order or execution agreement to the selected vendor. Installation details, along with verified vendor bank account information, must be uploaded on the National Portal by the implementing agency.
Once the physical verification and commissioning are completed, the agency shall use the ‘ULA Redeem’ option on the portal to initiate CFA disbursement, specifying consumer-wise and vendor-wise details for transparency.
The National Program Implementation Agency (NPIA) — REC Ltd. — will verify installation reports and vendor bank account details submitted on the portal. “Post successful verification by NPIA, CFA shall be disbursed directly to the ULA vendor's bank account. A notification shall be sent to the concerned State/Utility/Implementing Agency, providing complete visibility of the amount released to each ULA vendor,” mentioned the notifications.
It further added that any changes in vendor bank account details must also be routed through NPIA for verification and update of records, ensuring transparency and accuracy of the payment process.
MNRE stated that the new payment release mechanism will apply uniformly to all proposals under the ULA model, covering both Utility Owned (EPC and sub-RESCO) and Consumer Owned models.
To streamline fund management, MNRE will allocate money in advance to REC (the NPIA) under a designated head. This arrangement will help in tracking and identifying payments efficiently under the PM Surya Ghar Muft Bijli Yojana, ensuring accountability across all stakeholders involved.
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