Proximity to Large-Scale PV Projects Can Adversely Affect Home Prices

March 3, 2023 by Dan McCue
Proximity to Large-Scale PV Projects Can Adversely Affect Home Prices
Townhomes. (Photo by Dan McCue)

BERKELEY, Calif. — An analysis of the impact of construction of large-scale solar energy projects on nearby residential home values found the decline in property values varied significantly by state, but averaged out to a home sale price reduction of about 1.5% for homes within 0.5 miles of such facilities.

The study, entitled “Shedding Light on Large-Scale Solar Impacts: An Analysis of Property Values and Proximity to Photovoltaics Across Six U.S. States,” was conducted by the Lawrence Berkeley National Lab.

The lab’s findings were then published in the journal Energy Policy.

For the purpose of their analysis, the researchers looked at home transactions and the large-scale solar project footprints in six states: California, Connecticut, Massachusetts, Minnesota, New Jersey and North Carolina.

Together these states account for over 505 of the installed megawatt capacity of large-scale solar in the United States.

In all, the researchers analyzed over 1,500 solar projects and over 1.8 million home sale transactions, and like the respective home markets themselves, the results varied.

Comparing the sales transactions for homes within 0.5 miles of a large-scale solar project as opposed to being 2 to 4 miles away, the team found a 4% reduction in the sale price in Minnesota, a 5.6% reduction in New Jersey, and a 5.8% reduction in sale price in North Carolina.

However, in the remaining three states, California, Connecticut and Massachusetts, they found no statistically significant effects on the home sales price.

Using data from all six states, Berkeley Lab identified a home sale price reduction of 1.5% for homes within 0.5 miles of a large solar array compared to homes 2 to 4 miles away. 

For the mean selling price in the sample of roughly $400,000, a 1.5% diminution equates roughly $6,000.

When the Berkeley Lab researchers accounted for the prior land use, the population density in the area of the sold homes and the size of the solar project, the group found adverse home sale price impacts only found to be statistically significant for projects on previously agricultural land, projects near homes in rural areas (low population density) and homes near the largest solar projects in the data set (roughly 12 acres, equating to between 4 and 7 MW).

Berkeley Lab did not find evidence of statistically significant effects on home sale prices near large solar projects developed on greenfield, brownfield and mixed land use developments. 

Further, homes in urban (high population density) or urban cluster (medium population density) regions were not found to be impacted significantly. 

Finally, Berkeley Lab determined there were no effects on sale prices for homes near large solar projects with an area smaller than 12 acres.

The researchers note that their analysis did not take into consideration such factors as setbacks or landscaping features that could play a role in nearby property valuation.

In addition, they said, the study does not examine the attitudes or sentiment of the neighboring communities, or of home sellers and buyers, toward the solar projects, which could influence property valuations near solar projects. 

Finally, the study did not examine broader economic impacts or benefits to host communities from large-scale solar projects, which might positively impact home sale prices.

As a result, the Berkeley Lab researchers recommend that future researchers look into these issues.

Dan can be reached at [email protected] and at https://twitter.com/DanMcCue

A+
a-
  • home prices
  • large-scale solar projects
  • Lawrence Berkeley National Laboratory
  • In The News

    Health

    Voting

    Renewable Energy

    March 27, 2024
    by TWN Staff
    Rep. Cleaver New Co-Chair of House Renewable Energy and Energy Efficiency Caucus

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency... Read More

    WASHINGTON — Rep. Emanuel Cleaver II, D-Mo., is the new Democratic co-chair of the House Renewable Energy and Energy Efficiency Caucus. He was invited to serve as co-chair by Sens. Jack Reed, D-R.I., and Mike Crapo, R-Idaho, the co-chairs of the Senate Renewable Energy and Energy... Read More

    March 26, 2024
    by Dan McCue
    Biden Administration Approves Seventh Offshore Wind Project

    WASHINGTON — The Biden administration on Tuesday approved the construction of the Sunrise Wind offshore wind farm, a project off... Read More

    WASHINGTON — The Biden administration on Tuesday approved the construction of the Sunrise Wind offshore wind farm, a project off the coast of Martha’s Vineyard, Massachusetts, that proponents say will eventually power 320,000 homes. The project is the seventh commercial-scale wind farm to be approved under... Read More

    March 26, 2024
    by Dan McCue
    Sen. Blumenthal Lauds Expansion of Tax Credit for Offshore Wind Projects

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and... Read More

    NEW LONDON, Conn. — Sen. Richard Blumenthal, D-Conn., visited State Pier in New London, Connecticut, on Monday to tout and celebrate the Biden administration’s decision to expand eligibility of federal tax credits for offshore wind projects. “This tax credit has been a long time in coming,”... Read More

    China to Challenge Biden's Electric Vehicle Plans at the WTO

    BEIJING (AP) — China filed a World Trade Organization complaint against the U.S. on Tuesday over what it says are... Read More

    BEIJING (AP) — China filed a World Trade Organization complaint against the U.S. on Tuesday over what it says are discriminatory requirements for electric vehicles subsidies. Starting this year, U.S. car buyers are not eligible for tax credits of $3,750 to $7,500 if critical minerals or other battery... Read More

    Here Are the Big Hurdles to the Global Push to Build Up Renewable Energy

    The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N.... Read More

    The world's governments have agreed they want to triple renewable energy by 2030, a goal laid out at the U.N. climate summit in December. But right now, the post-pandemic global economy is throwing up obstacles that will need to be overcome if the goal is going... Read More

    March 25, 2024
    by Dan McCue
    Energy Department Awards $6B to Decarbonization Projects

    WASHINGTON — The U.S. Department of Energy on Monday awarded $6 billion to 33 projects across more than 20 states... Read More

    WASHINGTON — The U.S. Department of Energy on Monday awarded $6 billion to 33 projects across more than 20 states to decarbonize energy-intensive industries while creating jobs and revitalizing the communities in which they are located. Funded by the bipartisan infrastructure law and Inflation Reduction Act,... Read More

    News From The Well
    scroll top