What is CFA in solar?

CFA — Central Financial Assistance — is the fixed rupees-per-kW subsidy the central government pays on rooftop solar under schemes such as PM Surya Ghar: ₹30,000 per kW for the first 2 kW and ₹18,000 for the third, up to ₹78,000.

Does a higher quotation increase my subsidy?

No. CFA is a fixed amount per kW, not a percentage of what you pay, so inflating the quote does not raise it — it only raises your own cost.

Solar Glossary

POLICY & SUBSIDY

CFA (Central Financial Assistance)

CFA is the formal name for the central government subsidy paid on rooftop solar under schemes like PM Surya Ghar. It is a fixed rupees-per-kW amount credited to the consumer, not a percentage of the quote.

Because CFA is fixed, inflated quotations do not increase the subsidy — a fact worth remembering when a vendor "adjusts" prices around it. Housing societies receive CFA at ₹18,000/kW for common-area systems up to 500 kW.

In More Depth

CFA is paid per kW of installed capacity, not as a share of your invoice. Under PM Surya Ghar that means ₹30,000 per kW for the first 2 kW and ₹18,000 for the third, capped at ₹78,000 — read the full process in the PM Surya Ghar guide.

Frequently Asked Questions

What is CFA in solar?: CFA — Central Financial Assistance — is the fixed rupees-per-kW subsidy the central government pays on rooftop solar under schemes such as PM Surya Ghar: ₹30,000 per kW for the first 2 kW and ₹18,000 for the third, up to ₹78,000.
Does a higher quotation increase my subsidy?: No. CFA is a fixed amount per kW, not a percentage of what you pay, so inflating the quote does not raise it — it only raises your own cost.

Related Terms

PM Surya Ghar: Muft Bijli Yojana MNRE

Part of the HUM Solar Glossary — 75+ plain-language definitions for India’s solar ecosystem, maintained as a neutral reference. Browse all terms →

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