The CaaS model enables smallholder farmers and cooperatives to access solar-powered cold storage infrastructure without the burden of high initial investments and ownership. A technology provider (CoolCrop) installs, operates and maintains the cold storage units at or near the farmgate, and farmers or cooperatives pay a service fee to use the facility. This fee can be based on the quantity of produce stored, such as by weight or crate, or defined as a flat rate and is based on the total costs of installing, operating, maintaining, and financing the equipment. The viability of the intervention depends largely on selecting an appropriate pricing strategy, which covers operational costs while remaining affordable to formers, and furthermore the financial structure of the initial investment. Service providers earn revenue through storage and transportation fees, and potentially through net metering of surplus solar energy. Furthermore, the model promotes the addition of value-added services at the farmgate through the inclusion of services conventionally performed at packhouses. Solar-powered machinery for sorting and grading can be installed alongside the cold storages, creating an additional income stream for the service model. Farmers and cooperatives benefit from the reduction of post-harvest losses, preservation of quality and shelf life and the possibility to delay sales beyond market gluts, leading to improved income.
In Himachal Pradesh, poor accessibility and weak road infrastructure expose storage providers to high operational costs. The management and maintenance of cold storage units remains the greatest hurdle to achieving economic sustainability. To address these challenges, the model includes a long-term strategy of distributing cold storage units clustered geographically. However, this becomes economically viable only after the model is scaled up and widely disseminated, requiring substantial upfront capital or external subsidies in the early phase.