Central CFA vs state top-up: how PM Surya Ghar subsidy stacking works

When you quote a PM Surya Ghar job, the customer cares about one number: what they pay after subsidy. That number can have two parts — the central CFA, and a state top-up in some states. Get the stacking right and your quote is honest and competitive.

Central CFA vs state top-up: what is the difference?

The central CFA is the national PM Surya Ghar subsidy, capped at ₹78,000, while a state top-up is an extra subsidy some states add on top of it. The central part is fixed across India. The state part changes by state and is not offered everywhere.

CFA stands for Central Financial Assistance. It is the same word the scheme uses for the central government's share. When EPCs talk about "the subsidy", they usually mean the CFA. The state top-up is a separate, optional layer that only some state governments fund.

How much is the central CFA?

The central CFA is ₹30,000 per kW for the first 2 kW plus ₹18,000 for the third kW, which caps at ₹78,000 for a 3 kW system. Larger systems of 5 kW and 10 kW still get the same ₹78,000 cap — the CFA does not grow past 3 kW.

The CFA is on the benchmark, not your quote

The CFA is calculated on the MNRE benchmark cost, not on the price you quote. So if your quote is higher than the benchmark, the subsidy does not rise to match. This is why the central CFA is a fixed, dependable number you can put in every quote.

The CFA is paid to the customer, not you

The central CFA is paid directly to the customer by DBT (Direct Benefit Transfer) after the system is commissioned and the net meter is installed. You do not receive the subsidy. The customer pays your full price, then the government refunds the CFA to their bank account.

What is a state top-up subsidy?

A state top-up subsidy is an extra capital subsidy a state government adds on top of the central CFA, usually a set amount per kW. Not every state offers one, and the amounts vary widely. A top-up makes solar cheaper for that state's residents than the central CFA alone.

State top-ups are funded from state budgets, so they can be paused, revised, capped, or ended at short notice. A state might offer a top-up one financial year and drop it the next. Some run out when the year's budget is used up. This is why a top-up is never a sure thing.

How do central and state subsidies stack?

Central and state subsidies stack by adding together into one total subsidy that the customer receives. The central CFA is the base, and the state top-up sits on top. In states with a top-up, the customer's net cost drops by both amounts combined.

The two parts are paid through different routes. The central CFA comes from the national scheme by DBT after commissioning. The state top-up is released by the state, often through its nodal agency or DISCOM, on its own timeline. So a customer in a top-up state may get two separate payouts, not one.

Why the two amounts arrive separately

Because the central CFA and state top-up come from different budgets and systems, they rarely land on the same day. The central CFA often arrives first. The state top-up can follow weeks later, and the timing varies a lot. Tell the customer to expect two refunds, not one combined payment.

A worked central-plus-state stacking example

The table below shows how the central CFA and an illustrative state top-up stack on a sample 3 kW job. It is a teaching example to show the method — every state figure must be verified before you use it in a real quote.

Read the table top to bottom. The benchmark cost sets the central CFA. Your actual quote sets what the customer pays before subsidy. The central CFA and the illustrative state top-up add up to the total subsidy. Subtract that from your quote to get the net customer cost.

Note how the central CFA stays at ₹78,000 even though the quote is higher than the benchmark. Only the customer's net cost moves with your price. For a clean way to lay this out, see our customer quotation template.

Which states have offered a top-up?

Several states have at times offered a top-up on PM Surya Ghar, but the list and the amounts change often, so none of the figures below should be treated as current fact. They are examples of the kind of top-up states have run, to show the pattern — not a live price list.

• States like Uttar Pradesh have at times offered a residential solar top-up of around ₹15,000/kW — verify the current status with the state nodal agency.
• States like Gujarat have at times run their own residential solar support alongside the central scheme — verify whether a top-up is active now with the state DISCOM.
• States like Rajasthan have at times announced additional residential solar subsidies — verify the current per-kW figure with the state energy department.
• Other states have offered top-ups in some years and not others — always confirm your own state's current position before quoting.

The point is not the exact rupee figure, which you must verify. The point is that the customer's net cost in a top-up state is lower than the central CFA alone, so your quote should reflect it — once you have confirmed the top-up is active and at what rate.

How do you quote central plus state subsidy correctly?

Quote the central CFA as a firm line and the state top-up as a separate, verify-first line. Keeping them apart protects you if the state top-up is paused or paid late. The customer sees an honest breakdown instead of one blurry "after subsidy" number.

Show three numbers, not one

A clear quote shows the system price, the central CFA, and the state top-up on three lines, then the net cost. This way the customer understands exactly where each rupee comes from and which part you control. It also makes your margin and pricing easier to defend.

Be clear about who pays whom

Tell the customer that both subsidies are refunds to them, not discounts you give up front. They pay your full price; the government and the state then refund the CFA and the top-up. Setting this expectation early avoids a difficult conversation at handover.

Common stacking mistakes to avoid

Most stacking errors come from treating a state top-up like a guaranteed number. Avoid these and your quotes stay safe.

• Quoting an old state top-up — the figure may have changed or ended; verify before every quote.
• Promising one combined payout — central and state amounts usually arrive separately and at different times.
• Subsidising your own margin — never lower your price assuming a top-up that may not come through.
• Calculating CFA on your quote — the central CFA is on the MNRE benchmark cost, not your price.
• Hiding the breakdown — one "after subsidy" number hides risk; show central and state on separate lines.

Because state top-ups change so often, mark every quote with its date and a note to re-confirm the state figure. Our subsidy amount slabs guide covers the firm central numbers you can always rely on.

How SuryaHub helps you stack and track both subsidies

SuryaHub builds the customer quote with the central CFA and any state top-up as separate lines, so the net cost is clear and honest. It then runs the job through DISCOM and net-metering steps and lets you track both payouts in finance and GST — central by DBT and the state top-up on its own timeline. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and the figures here are scheme facts and illustrative examples, not guarantees.

Related guides

Frequently asked questions

Sources & references

The central CFA slab, the benchmark-cost rule and the DBT payout come from primary government sources. State top-up figures change often — always confirm the current amount and status with your own state nodal agency or DISCOM before you quote.

• National Portal for PM Surya Ghar ↗

  The central CFA slab, benchmark-cost rule and DBT payout process.

• Ministry of New & Renewable Energy (MNRE) ↗

  Scheme guidelines and the MNRE benchmark cost used for the CFA.

• State nodal agency (example: UPNEDA) ↗

  Example of a state energy department / nodal agency — verify your own state.