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MNRE Introduces New CFA Release Mechanism Under ULA Model of PM Surya Ghar Muft Bijli Yojana

The Ministry of New and Renewable Energy (MNRE) has released new guidelines for the Central Financial Assistance (CFA) payment 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.

According to the notification, MNRE has clarified that no advance subsidy payments will be allowed under this model. The entire CFA amount will be disbursed in a single tranche — strictly following the completion of installation, inspection, and commissioning of the Rooftop Solar (RTS) systems.

Key Features of the Revised CFA Release Mechanism

Under the updated system, the concerned state, utility, or implementing agency must issue work orders or execution agreements to selected vendors. Installation data and verified vendor bank account details are to be uploaded on the National Portal by the implementing agency.

After physical verification and commissioning, the agency will initiate CFA disbursement through the ‘ULA Redeem’ option on the portal, entering consumer-wise and vendor-wise details to ensure full transparency in the process.

The National Program Implementation Agency (NPIA) — REC Limited — will validate installation reports and bank details submitted by vendors. Once verified, the CFA will be transferred directly to the vendor’s bank account, and a notification will be issued to the relevant state or implementing agency for complete visibility of the disbursed amount.

MNRE also emphasized that any changes to vendor banking information must go through NPIA verification before updates are made, maintaining integrity and transparency in fund management.

Uniform Application Across All ULA Projects

The Ministry has confirmed that this payment mechanism will apply uniformly to all projects under the ULA model, covering both Utility-Owned (EPC and sub-RESCO) and Consumer-Owned systems.

To ensure efficient fund management, MNRE will allocate funds in advance to REC Limited under a designated account head, enabling smooth tracking and accountability of subsidy payments made under the PM Surya Ghar Muft Bijli Yojana.

This streamlined mechanism is expected to enhance transparency, prevent misuse of funds, and accelerate rooftop solar adoption across India’s residential and utility segments.