Payment Release Mechanism under Utility led Aggregation Model of PM Surya Ghar

**Executive Summary** This Office Memorandum, dated October 6, 2025, outlines the payment release mechanism for Central Financial Assistance (CFA) under the Utility Led Aggregation (ULA) model of the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY). It details the stages and manner of fund release for ULA projects and aims to ensure transparency and timely utilization of CFA funds. The memorandum directs all ULA Implementing Agencies and State/UT entities to adhere to the prescribed process. **Key Points / Main Content** * **CFA Release:** * CFA will be released post commissioning in a single tranche. * Release is strictly linked to successful physical installation, inspection, and commissioning of rooftop solar (RTS) systems. * No advance release of CFA is permitted. * **National Portal Process:** * State/Utility/Implementing Agency to issue a work order/execution agreement to the selected vendor. * Implementing Agency uploads consumer installation information and verified vendor bank account details on the National Portal. * Upon completion and verification, Implementing Agency uses the "ULA Redeem" option to initiate CFA disbursement, specifying consumer-wise and vendor-wise details. * **Verification and Payment by NPIA:** * NPIA verifies installation reports and vendor bank account details uploaded on the National Portal. * CFA is disbursed directly to the ULA vendor's bank account upon successful verification by NPIA. * Notification sent to State/Utility/Implementing Agency with complete visibility of amount released. * **Vendor Details:** * Any modification or update of vendor bank account details must be routed through NPIA for verification and update of records. * **Applicability:** * The payment release mechanism applies uniformly to all ULA model proposals, including Utility Owned (EPC and sub-RESCO) and Consumer Owned models. * **Fund Assignment:** * MNRE will assign funds in advance to the National Program Implementation Agency (NPIA - REC). * **Adherence to Process:** * All ULA Implementing Agencies and State/UT entities are directed to adhere to the prescribed process without deviation. **Impact Analysis** **State/Utility/Implementing Agencies:** * **Impact:** Responsible for issuing work orders, uploading data to the National Portal, initiating CFA disbursement, and communicating with vendors. * **Action Required:** Must adhere to the outlined process for data submission, verification, and payment initiation. **NPIA (REC):** * **Impact:** Responsible for verifying data uploaded on the National Portal and disbursing CFA funds directly to vendors. * **Action Required:** Verify installation reports and vendor bank account details, disburse CFA funds, and maintain accurate records of payments. **ULA Vendors:** * **Impact:** Will receive CFA payments directly into their bank accounts after successful verification. * **Action Required:** Ensure accurate bank account details are provided and maintained, and follow up on notifications regarding CFA disbursement. **MNRE** * **Impact:** Oversees the financial process. * **Action Required:** Assign funds in advance to the National Program Implementation Agency.

Key Entities Referenced