CFA (Central Financial Assistance): What is the Exact Difference Between Central and State Solar Subsidy? (2026 Guide)

Are you planning to install a rooftop solar plant under the flagship 'PM Surya Ghar Yojana'? When you browse the internet or consult a local solar vendor, you are immediately bombarded with two distinct figures: "Sir, you will receive ₹78,000 from the Central Government and an additional ₹30,000 from the State Government." This is where the maximum confusion originates.

Many homeowners question: "Isn't 'PM Surya Ghar' a central scheme? Where does the State Government (like UPNEDA in Uttar Pradesh) fit into this equation? Will these two amounts be credited separately? And most importantly, what exactly is the technical definition of CFA?"

In this comprehensive 'Mega-Guide', we will thoroughly demystify this financial puzzle. We will break down exactly how you secure a massive total of ₹1,08,000 in subsidies for a 3kW plant in 2026, and the chronological timeline of how these two distinct funds are credited to your bank account via DBT (Direct Benefit Transfer).

1. What Exactly is CFA (Central Financial Assistance)?

CFA stands for 'Central Financial Assistance'. In simple commercial terms, this is the primary grant directly disbursed by the Government of India (Ministry of New and Renewable Energy - MNRE) straight into your verified bank account.

• Uniform Across India: Regardless of whether your house is in Uttar Pradesh, Maharashtra, or Kerala, the CFA for a standard 3 kW residential solar plant is fixed at exactly ₹78,000 nationwide.
• The Funding Source: This capital is allocated from the central budget and managed by massive Maharatna PSUs like REC Ltd and PFC.
• The Gateway: You are legally eligible for the CFA only if you apply exclusively through the official National Portal (pmsuryaghar.gov.in).

2. What is the State Subsidy (The Top-up Amount)?

Even with the ₹78,000 CFA, the total capital expenditure (CapEx) of a high-quality 3kW plant (which averages around ₹1,60,000) was proving to be a heavy burden for middle-class Indian families.

To violently accelerate solar adoption within their jurisdictions, individual State Governments decided to offer an additional 'Top-up'. For example, the Government of Uttar Pradesh (via UPNEDA) declared that any citizen installing a solar plant would receive an additional ₹30,000 directly from the state's own treasury, completely above and beyond the central CFA.

3. Head-to-Head: CFA vs State Subsidy Breakdown

Let's dissect the bureaucratic and financial differences between these two grants:

4. The Mathematics of the ₹1,08,000 Subsidy on a 3kW Plant

Assume you reside in Uttar Pradesh and hire an empaneled vendor to install a premium 3kW On-Grid solar plant (using Mono PERC DCR Panels). The vendor hands you a final invoice of ₹1,60,000.

5. The Dual DBT Process: How Do You Actually Get the Money?

The greatest logistical triumph of 2026 is that you absolutely do not need to visit separate government offices to claim these two subsidies.

1. You apply on the National Portal. The vendor executes the physical installation.
2. An official from the local utility (like UPPCL) inspects the plant and installs the bi-directional 'Net Meter'.
3. Once the 'Joint Inspection Report' is digitally approved, you upload your canceled cheque/bank passbook on the portal.
4. Transaction 1 (The CFA): Within 30 days, the Central Government (MNRE) triggers a DBT transfer of ₹78,000 directly into your Aadhaar-seeded (NPCI) bank account.
5. Transaction 2 (The State Subsidy): The National Portal's backend API automatically forwards your clearance data to the State Government (UPNEDA). A few weeks later, the state treasury transfers the remaining ₹30,000 into the exact same bank account.

6. Frequently Asked Questions (FAQs)

Q1. If I install a larger 5 kW or 10 kW plant, will I get a proportionately higher CFA and State Subsidy?
No. For residential installations, the Central Government has strictly capped the maximum CFA at ₹78,000 (which covers up to 3 kW). Similarly, the UP State Subsidy is capped at a maximum of ₹30,000. Regardless of how massive your rooftop plant is (e.g., 10 kW), the absolute maximum total subsidy you can claim is fixed at ₹1,08,000.

Q2. Do I have to pay the vendor the full ₹1,60,000 upfront?
Yes. The PM Surya Ghar scheme operates on a 'Reimbursement' model. You must clear the vendor's invoice initially. The subsidy is later credited to your bank account as a cash refund. If you lack the upfront capital, the portal offers integrated 'Low-Interest Solar Loans' from leading national banks.

Q3. My CFA (₹78,000) was credited last month, but the State Subsidy (₹30,000) is still missing. What should I do?
State subsidies are disbursed directly from the state treasury's allocated budget. Due to local bureaucratic processing, the State Subsidy routinely experiences an extra delay of 1 to 2 months compared to the highly automated Central CFA. If the delay extends abnormally, you can escalate the matter by registering a grievance on the 'CM Helpline (1076)' or the IGRS portal.