Solar cooling technologies—including cold and freezing rooms, milk cooling systems, and ice makers—offer promising solutions for reducing post-harvest losses in sub-Saharan Africa. They improve food quality, extend shelf life, and can increase incomes, making a real difference for smallholder farmers.
At Phaesun, we conducted a comprehensive field study across Kenya’s agricultural value chains to explore business models and financing schemes for solar cooling solutions. Over six weeks, we combined on-site research, case study validation, and expert interviews to identify conditions and pathways for sustainable deployment of solar cooling technologies.
Key Findings
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Reduced Post-Harvest Losses & Improved Food Quality: Across all projects we reviewed, solar cooling consistently extended shelf life and preserved product quality. In many cases, this translated into moderate to significant income increases for farmers and system operators.
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Environmentally Friendly & Cost-Effective: Several projects relied exclusively on solar PV and, in some cases, natural refrigerants, minimizing operating costs and environmental impact.
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Economic Viability Depends on Model & Scale: Our analysis identified four main operational categories:
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Market- & Export-Oriented Operations
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Focus on high-value produce (e.g., French beans, flowers, fresh herbs)
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Payback periods of 3–4 years
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Benefit from economies of scale, professional management, and established market linkages
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Aggregation Models
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Operators purchase, cool, and resell produce
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Viable with organized supply chains and value addition (e.g., dairy cooperatives)
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Cooling-as-a-Service (CaaS)
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Provides accessible cooling without upfront investment
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Useful for farmer groups and market traders
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Most effective for high-value produce where cooling costs remain proportional to product margins
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Individual Smallholder Models
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Deliver highest social impact but require substantial support
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Often need 40–100% subsidization to overcome high lending rates
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Directly address rural poverty and food security when implemented successfully
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Financing Opportunities
We also identified an “impact capital gap” in the solar cooling sector. Economic viability depends on scale, product value, and financing conditions. Beyond traditional subsidies, innovative mechanisms—like asset financing, blended finance, and specialized financial products—can improve access to sustainable solar cooling solutions. Combining multiple funding sources with capacity-building initiatives enhances success, particularly for cooperative or smallholder models.
