Oct 21, 2024
Renewable power companies often face resistance when developing new solar farms.
Renewable power companies almost always run into resistance when pursuing a new commercial-scale solar farm. Some of that resistance is rooted in the fear that a solar farm will reduce local property values. Given what has been observed with other forms of renewable power, the concerns are legitimate. But a recently released study shows consumers have nothing to worry about.
The study demonstrates that commercial-scale solar farms do not hurt property values. And in some cases, they may even provide a slight boost. Solar farms can also benefit communities in other ways as well.
More About the Study
A team of researchers from Loyola University Chicago, Simeng Hao and Gilbert Michaud, looked at 70 commercial-scale solar projects built between 2009 and 2022. All the facilities were in the Midwest and had capacities greater than 5MW.
The team looked at property values compiled by Zillow. They compared values at five years before a solar project was initiated against values on the project's operational date. It was noted that operational dates tend to be two years or so after construction begins. Here is what they found:
Solar farm construction had no negative impact on property values.
Projects contributed to local economies through investments and the tax base.
Projects also contributed through economic development and new jobs.
It is especially intriguing to note that local properties will enjoy decades of stability once a new solar farm goes in. A project with a 30-year lease would protect that land from being developed for other uses, some of which could be considered less desirable by local property owners. So many years of stability tend to improve property values.
Smaller Projects Fared Better
Researchers looked at solar farm projects of different sizes in order to compare the numbers. Of the 70 they looked at, 11 had capacities in excess of 100MW. The researchers noted that solar farms with capacities of 5-20MW fared better in terms of their relation to property values.
In other words, the smaller farms had a more positive impact on property values. Researchers attributed this to the fact that smaller projects can be more easily buffered by landscaping and trees.
Researchers also pointed out that the projects they looked at rarely involved scenarios in which a solar farm was just a few hundred feet away from a local residence. Instead, the projects were on sizable plots of land chosen partly because developers found it easier to hide the installations from public view.
More Hype Than Fact
For us, one of the main takeaways here is that fear about property values is more hype than fact – at least when it comes to solar farms. Wind farms may be problematic because people legitimately don't like living too close to an installation that continually produces unwanted noise. Solar is obviously different.
As long as a piece of land is chosen properly, solar farms are barely noticeable to local residents. Proper land development and improvement should mitigate flood concerns while the strategic use of natural and human-introduced landscaping prevents solar farms from becoming eye sores.
As the world gradually embraces more renewable power, it is important for the general public to learn to separate the facts from emotional reactions. No doubt renewable power still encourages strong emotional reactions from local residents. But when scenarios are looked at through the lens of facts, minds are changed and views are altered.
As for the future of solar power generation, it might very well rest in solar farms with capacities of up to 100MW. Smaller farms serving local communities could become a big thing.
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