Introduction
The Utility-Led Aggregation, or ULA, model is an implementation model under PM Surya Ghar: Muft Bijli Yojana for residential rooftop solar. Under this model, the distribution utility, or DISCOM, or a state-designated entity installs rooftop solar systems on behalf of individual residential households instead of leaving each household to procure and manage the installation separately.
What the model means
In simple terms, the ULA model shifts the burden of project aggregation, financing coordination, vendor management, and execution from individual households to the utility or state agency. This is especially useful where households are small consumers, have limited upfront capital, or face difficulty in dealing individually with vendors, loans, approvals, and technical procedures. This is evident from the official guidelines and later ministry reporting around low-income and small-capacity rooftop systems.
Official definition
The Ministry of New and Renewable Energy’s operational guidelines state that under the ULA model, DISCOMs or state-designated entities install rooftop solar projects on behalf of individual residential households. The Ministry of Power annual report for 2025–26 further explains that in this model the utility or State Government can mobilize resources from:
• State Government support
• own funds
• Corporate Social Responsibility contributions
• other dedicated sources
Why the model was introduced
The model was introduced because household-level rooftop solar often faces practical barriers:
• small consumers cannot easily organize installation individually
• low-income households may struggle with upfront cost
• fragmented demand increases transaction cost
• banks and vendors may hesitate in dealing with many tiny systems one by one
• technical approvals and net metering can become cumbersome for individuals
By aggregating many households into one utility-led programme, these bottlenecks can be reduced. This logic is also reflected in official advisories that specifically encourage ULA for low-income households installing systems below 1 kW.
Main features
The ULA model has a few important characteristics:
• the initiative is led by the DISCOM or state-designated agency
• many households are bundled together into one aggregated programme
• the utility arranges installation on behalf of the households
• financing can be pooled from public, utility, CSR, or other sources
• it is designed for the residential rooftop solar segment under PM Surya Ghar
Relation with PM Surya Ghar
The ULA model is part of the broader reform architecture of PM Surya Ghar: Muft Bijli Yojana. Government releases in late 2025 and early 2026 repeatedly list the inclusion of RESCO and Utility-Led Aggregation models among major implementation improvements under the scheme.
Difference from RESCO model
The ULA model is often mentioned alongside the RESCO model, but they are not the same.
RESCO model
Under the RESCO, or Renewable Energy Service Company model, a third-party private entity invests in and installs the rooftop solar system, and the consumer pays mainly for the electricity consumed, without bearing the upfront capital cost.
ULA model
Under the ULA model, the utility or state-designated entity aggregates households and installs the rooftop systems on their behalf. The central role is played by the utility side rather than by a private third-party service company.
So the main distinction is:
• RESCO = private third-party led investment and service
• ULA = utility or state-led aggregation and execution
Why it is important
The ULA model is important because it can help rooftop solar reach households that might otherwise be excluded from the programme. It is particularly useful for:
• economically weaker households
• households with small rooftop systems
• regions where consumer-level adoption is slow
• states seeking faster scaling through centralized execution
The Ministry of Power annual report notes that seven States and Union Territories had received final approval under the ULA route as of 31 December 2025.
Recent examples
A PIB release from December 2025 highlighted approval of a consumer-owned ULA model in Odisha under PM Surya Ghar for installation of 1.5 lakh rooftop solar systems of 1 kW each, targeted particularly toward economically weaker households. This is a very important live example of how the ULA model is being operationalized.
Analytical significance
The ULA model reflects a shift from a purely consumer-driven rooftop solar approach to a platform-based and utility-facilitated approach. Its deeper policy significance lies in three things:
• aggregation reduces fragmentation
• utility involvement improves execution and coordination
• public or pooled financing can make rooftop solar accessible to smaller consumers
This makes the model important not just for solar expansion, but also for inclusion and last-mile energy transition. That is an inference drawn from the design of the model and the official focus on low-income households and utility-led implementation.
Conclusion
The Utility-Led Aggregation model is a utility-driven residential rooftop solar implementation model under PM Surya Ghar that enables DISCOMs or state agencies to aggregate households and install solar systems on their behalf. Its main value lies in making rooftop solar easier, more scalable, and more inclusive for smaller and economically weaker households.
