Renewable energy projects, particularly solar and wind farms, have become a significant part of the landscape in many communities, raising questions about their impact on property values. Fortunately, extensive research and studies show that these projects usually have a neutral or positive effect on home and land values.
Solar energy projects are becoming a common sight in both suburban and rural areas, and several studies have been conducted to assess their impact on nearby property values. A landmark study by a leading national appraiser found that properties near solar installations experienced either neutral or positive changes in value. This is largely attributed to the economic benefits that solar projects bring to communities, which include increased revenue for local governments, as well as more funding for schools and essential services like hospitals and fire departments. By enhancing the overall affluence and level of services available in communities, solar projects help support and increase local property values.
"By significantly increasing revenue to local landowners and enhancing the local tax base, these projects support investments in roads, schools, and essential services like health care and public safety."
The effects of wind energy developments on home prices have also been thoroughly researched. Beginning in 2009, the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (LBNL) examined about 7,500 sales of single-family homes near 24 wind energy facilities across nine U.S. states. They concluded that if any impacts on property values existed, they were too minor and infrequent to be statistically significant, meaning it couldn’t be shown that any variations were due to the wind farms and not just the result of chance. Subsequent LBNL studies in 2015 and 2016 reinforced these findings, reporting no unique impact on the rate of home sales near wind turbines.
In 2023, LBNL conducted its most comprehensive study to date, examining more than 500,000 home sales near 428 wind projects across 34 states. It found that while property value effects were noticeable during and shortly after construction, they subsided within three to five years after the wind projects commenced operations. Notably, these effects were mostly confined to areas with higher population densities and were absent in rural regions.
This study revealed that while there may be short-term reductions in home sale prices within one mile of wind turbines during construction, particularly in more populous counties, these effects are not long-lasting. Home prices typically return to prior levels within three to five years after wind farm operations begin. In less populous counties, no significant impact on property values was found at all.
"In the long run they make these places more attractive to prospective home buyers and contribute to maintaining or increasing property values."
Beyond the direct impact on property values, renewable energy projects provide a wide range of indirect economic benefits essential for thriving rural economies. By significantly increasing revenue to local landowners and enhancing the local tax base, these projects support investments in roads, schools, and essential services like health care and public safety.
Many communities that host renewable energy projects have also found they’re newly attractive to businesses seeking to power their operations with inexpensive, clean energy.
New business investment creates local jobs and additional tax revenue, which in turn can drive property values higher.
Community solar programs, which have seen significant growth in rural areas, offer another avenue for enhancing property values. These programs allow participants to buy a share in a solar project and benefit from the electricity generated. They bring solar energy to those who cannot install their own rooftop panels, reducing electricity bills and lowering the energy burden for families. Such initiatives not only promote sustainable living but also contribute to the economic vitality of the community, potentially influencing property values positively.
In summary, while in more populated areas wind farm construction may have a temporary, short-term impact on property values, the overall trends indicate that renewable energy projects have either a neutral or positive effect. Overall, it has been shown that because wind and solar projects bring significant economic benefits to communities – including job creation, additional income for landowners, improved infrastructure, and enhanced local tax revenue – in the long run they make these places more attractive to prospective home buyers and contribute to maintaining or increasing property values.
Across the United States, many rural communities have deep roots in agriculture and a long history of using the land to generate value. Often, these places are also attractive to companies seeking locations to build solar farms. But is a solar farm really farming? And how does solar interact with other agricultural activities like growing crops and ranching?
