Is solar cooling a viable solution for agricultural value chains? Challenges & findings from a field study in Kenya
Summary
A field study in Kenya by Phaesun found that while solar cooling reduces post-harvest losses and increases income, economic viability varies significantly by operational model. Market- and export-oriented operations are highly viable with 3-4 year payback periods, whereas individual smallholder models require 40-100% subsidisation due to high commercial interest rates of 15-20%. The study identifies an "impact capital gap" and suggests that success depends on product value, scale, and the use of blended finance or Cooling-as-a-Service (CaaS) models.
Key insights
- Solar cooling technologies consistently reduce post-harvest losses and extend the shelf life and quality of food, leading to moderate or significant income increases for farmers, system operators, and project stakeholders.
- Economic viability for solar cooling is highly dependent on the operational model: market- and export-oriented operations processing high-value produce (such as flowers, fresh herbs, and French beans) are strongly viable with payback periods of 3-4 years, while individual smallholder models are not commercially viable on their own.
- There is an "impact capital gap" in the sector; individual smallholder models require 40-100% subsidisation via government or donor programs because commercial lending interest rates of 15-20% exceed potential returns.
- Alternative models such as Cooling-as-a-Service (CaaS) and aggregation models (like dairy cooperatives) show promise, with CaaS specifically benefiting farmer groups and market traders by removing upfront investment costs.
Cite the original document
- APA
- Ng, L. (2026). Is solar cooling a viable solution for agricultural value chains? Challenges & findings from a field study in Kenya. Alliance for Renewable Electrification. https://renewelec.org/is-solar-cooling-a-viable-solution-for-agricultural-value-chains-challenges-findings-from-a-field-study-in-kenya/
- Chicago
- Ng, Ling. Is solar cooling a viable solution for agricultural value chains? Challenges & findings from a field study in Kenya. Alliance for Renewable Electrification, 2026. https://renewelec.org/is-solar-cooling-a-viable-solution-for-agricultural-value-chains-challenges-findings-from-a-field-study-in-kenya/.
- Wikipedia
- {{cite report |last1=Ng |first1=Ling |title=Is solar cooling a viable solution for agricultural value chains? Challenges & findings from a field study in Kenya |publisher=Alliance for Renewable Electrification |date=17 February 2026 |url=https://renewelec.org/is-solar-cooling-a-viable-solution-for-agricultural-value-chains-challenges-findings-from-a-field-study-in-kenya/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{ng2026solar, author = {Ng, Ling}, title = {{Is solar cooling a viable solution for agricultural value chains? Challenges \& findings from a field study in Kenya}}, institution = {Alliance for Renewable Electrification}, year = {2026}, month = feb, url = {https://renewelec.org/is-solar-cooling-a-viable-solution-for-agricultural-value-chains-challenges-findings-from-a-field-study-in-kenya/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated