Solar milk chiller financial impact model
Produced with support from
What this model does: Estimates the annual economic return of solar-powered milk chillers for smallholder dairy farmers. Compares income and costs with and without the chiller to calculate net benefit, ROI, and payback period.
How to use it: Start by selecting an ownership model. "Individual" assumes a single farmer bears all costs and receives all benefits. "Shared" splits capital costs and payments across 2-4 farmers who pool their evening milk, improving affordability but dividing returns. Set herd size, baseline context (how evening milk is currently handled), milk prices, and financing terms. The outcome cards show which chiller sizes are viable and affordable for the selected configuration.
Farmer profile
Total herd:
Daily production:
Evening milk:
Payment method
Market context
Equipment costs
50L Chiller
100L Chiller
165L Chiller
Outcomes by chiller size
BEST ROI
Net annual
Payback
ROI
Utilization
Annual cash flow
Equipment & financing
Price:
Total cost:
Monthly:
Annual benefits
Evening milk:
Quality premium:
Spoilage savings:
Transport savings:
Methodology: Equipment lifespan 7 years. Technology reliability factor adjusts benefits for real-world performance. Evening milk monetization capped conservatively for domestic consumption and quality rejections. Affordability: payment >25% of dairy income = unaffordable, 15-25% = stretched; for cash purchases, upfront cost >2 months of dairy income = unaffordable, >1 month = stretched. ROI = annual net benefit ÷ upfront equipment cost.