Nirav Dhanani CFA (Central Financial Assistance) is the central government subsidy MNRE pays for eligible residential rooftop solar. Under PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, CFA is Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third kW, capped at Rs 78,000 per household.
Key Takeaways
- CFA = Central Financial Assistance (MNRE grants).
- PM Surya Ghar (Feb 2024): Rs 30,000/kW for the first 2 kW, Rs 18,000 for the 3rd kW.
- Residential CFA is capped at Rs 78,000 per system.
- Paid after installation, commissioning and net-metering sign-off.
How CFA Works
CFA is a fixed amount per kW, not a percentage of cost, and it is paid only after the system is live. Under PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, the residential rooftop slabs are:
- First 2 kW of capacity: Rs 30,000 per kW.
- 3rd kW of capacity: Rs 18,000.
- Above 3 kW: no further CFA, so the total is capped at Rs 78,000.
- Disbursement timing: released after installation, commissioning and net-metering sign-off, through the national portal and the DISCOM process.
- Scope: individual residential rooftops (group housing societies have separate terms). Commercial and industrial systems are not eligible and follow their own permitting and financing paths, see our comparison of commercial vs. residential solar permit design.
Worked Example: 5 kW Residential System
- First 2 kW → 2 × Rs 30,000 = Rs 60,000
- 3rd kW → Rs 18,000
- 4th and 5th kW → no CFA
Total CFA is Rs 78,000, the scheme cap. Scheme amounts change by notification, so verify current figures on the PM Surya Ghar portal before quoting them to a homeowner.
The earlier Rooftop Solar Programme Phase II used percentage slabs (40% up to 3 kW, 20% for 3 to 10 kW of benchmark cost), which PM Surya Ghar replaced.
Related Reading
CFA eligibility and disbursement often move in step with local permitting and interconnection timelines, our Solar Permits India state-wise guide covers how approval timelines vary by state, which in turn affects how quickly a subsidy claim can clear the DISCOM. Because CFA applies only to residential systems, it’s also worth understanding how rooftop solar works from sizing through commissioning, and how residential solar installations are typically scoped for homeowners applying for the subsidy.
CFA is administered under schemes set by MNRE, including PM Surya Ghar and the earlier Rooftop Solar Programme Phase II, and eligible systems must use DCR modules.
Disclosure: Heaven Green Energy is a Heaven Designs group company.
Frequently Asked Questions
3 commonly searched questions about CFA (Central Financial Assistance).
What is the full form of CFA in solar?
How is the CFA subsidy paid to homeowners?
Is CFA available for commercial or industrial rooftop solar?
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