Will utility-scale solar farms destroy the value of nearby homes?

What the science says...

Data across multiple studies show that utility-scale solar projects do not have major impacts on the values of surrounding properties¹. Rather, the installation of a solar farm typically has only a minor impact on the value of homes closest to it. The most comprehensive study to date, which examined over 1.8 million home transactions near 1,500 large-scale photovoltaic projects across six states, found relatively minor impacts on property values (Elmallah et al. 2023). Homes located within 0.5 miles of solar farms were found to experience price reductions of 1.5%, compared to properties 2–4 miles away. Homes located more than 1 mile from a solar farm were found to experience no statistically significant effect on its price. Similarly, a 2020 study examining 400,000 transactions around 208 utility-scale solar installations in Massachusetts and Rhode Island found a 1.7% decrease in property value for homes located within 1 mile of a project². These declines were concentrated in suburban areas, where there is more competition for space. In rural communities there was no impact on property values. Other studies have also found that utility-scale solar farms have a greater impact on property values in areas with higher residential population density³.

Yet other studies have found that solar panels can have a neutral or even a positive impact on home values. A 2018 study of solar farms in Indiana and Illinois found “no consistent negative impact” to the value of adjacent properties “that could be attributed to proximity to the adjacent solar farm⁴.” Instead, the researchers discovered that properties within 1,320 feet of solar farms sold by an average of 1.92% more than comparable properties that were not located near any solar farms. Another 2018 study examined 956 U.S. solar projects installed before 2016 and found a majority of these projects had a neutral impact on property values.

By contrast, a separate study found that the presence of a fossil fuel fired power plant within 2 miles of one’s home decreased its value by 4–7%, with the largest decreases within 1 mile and for high-capacity plants (Davis 2011). In that study, 92% of the power plants surveyed were fueled by natural gas.

Footnotes:

[1] Richard Kirkland, Grand Solar Impact Study, Kirkland Appraisals, (Feb. 25, 2016); Solar and Property Value, Solar Energy Industries Association (Jul. 2019)

[2] Vasundhara Gaur et al., Property Value Impacts of Commercial-Scale Solar Energy In Massachusetts And Rhode Island, Dep’t. Env’t. and Nat. Res. Econ. U. R.I., 4 (2020)

[3] Leila Al-Hamoodah et al., An Exploration of Property-Value Impacts Near Utility-Scale Solar Installations, Lawrence Berkeley National Laboratory (May 2018)

[4] Patricia McGarr & Andrew Lines, Property Value Impact Study: Proposed Solar Farm, McLean County, IL, at 17, (Aug. 7, 2018)

This rebuttal is based on the report "Rebutting 33 False Claims About Solar, Wind, and Electric Vehicles" written by Matthew Eisenson, Jacob Elkin, Andy Fitch, Matthew Ard, Kaya Sittinger & Samuel Lavine and published by the Sabin Center for Climate Change Law at Columbia Law School in 2024. Skeptical Science sincerely appreciates Sabin Center's generosity in collaborating with us to make this information available as widely as possible.

Last updated on 26 October 2024 by Sabin Center Team. View Archives