Do Solar Farms Hurt Your Property Value: As solar farms—large-scale solar energy projects that generate power for the grid—continue to grow in number across the United States, they bring with them a mix of opportunity and concern. One question consistently raised by homeowners and local officials alike is this: Do solar farms hurt your property value?
With clean energy policies gaining momentum at both federal and state levels, more rural and suburban communities are seeing land being converted into utility-scale solar installations. But alongside the push for sustainability comes hesitation—particularly from property owners who worry about how proximity to these large solar arrays might affect the value of their homes.
In response to these concerns, a team of researchers at the Lawrence Berkeley National Laboratory (LBNL) published one of the most comprehensive studies to date. Their findings offer new clarity on a topic that has often been driven by opinion rather than data. In this article, we’ll walk through those results, explain what they mean for property owners, and share guidance backed by credible research, practical examples, and legal insight.
Do Solar Farms Hurt Your Property Value
| Feature | Summary |
|---|---|
| Study Source | Lawrence Berkeley National Laboratory (LBNL) |
| Scope of Study | 1.8 million home sales across six states (CA, CT, MA, MN, NJ, NC) |
| Time Period | 2003–2020 |
| Primary Finding | Homes within 0.5 miles of utility-scale solar farms sold for an average of 1.5% less |
| State-Specific Impacts | Larger drops (4–5.8%) in MN, NJ, NC; negligible to none in CA, MA, CT |
| Additional Studies | Midwest data (Loyola University) showed value increases of 0.5–2% in rural areas |
| Influencing Factors | Visual impact, zoning, buffer zones, community engagement, and land use |
| Professional Guidance | Seek local zoning data, property disclosures, and market comparables |
| Official Website | emp.lbl.gov |
So, do solar farms hurt your property value? Based on verified, peer-reviewed data, the answer is: not significantly—and often not at all. While some localized declines of 1.5–5% may occur in close proximity, especially when the installation is visually prominent, most homes—particularly those more than 0.5 miles away—see no measurable impact.
In fact, in rural regions with strong planning and community benefit programs, solar farms can contribute positively to the local economy and stabilize or even boost property values.
As renewable energy continues to scale, the key to minimizing negative impacts lies in transparent planning, thoughtful zoning, and community collaboration.
What Exactly Is a Solar Farm?
A solar farm, or utility-scale solar installation, is a large area covered with solar panels that generate electricity for distribution through the power grid. These are different from residential rooftop systems and typically occupy anywhere from a few acres to several hundred acres.
They’re commonly located in rural or semi-rural areas, where land is cheaper and sunlight is abundant. While they produce zero emissions and contribute significantly to energy goals, they also change the landscape—sometimes significantly.
The LBNL Study: A Detailed Look
The 2023 study by the Lawrence Berkeley National Laboratory, funded by the U.S. Department of Energy, analyzed 1.8 million real estate transactions over nearly two decades. It examined home sales near 70 utility-scale solar projects ranging in size from 1 megawatt (MW) to 150 MW.
Here’s what researchers found:
- Average decrease in property value within 0.5 miles: 1.5%
- Homes 0.5 to 1 mile away: No statistically significant decrease
- Homes more than 1 mile away: No impact
- Localized extremes: In some areas like North Carolina, decreases reached 5.8%
- States like California and Massachusetts: Showed no measurable impact, despite high solar adoption
Critically, the study used hedonic pricing models—a standard in real estate valuation—which isolate the impact of the solar farm by controlling for other variables like home size, age, neighborhood quality, and market conditions.
Why Property Values Are Sometimes Affected
While the LBNL study found small to modest effects, those impacts were not uniform. Let’s explore the main factors that influence whether a solar farm affects nearby property values.
1. Visibility and Aesthetic Concerns
One of the most consistent findings is that homes with a direct line of sight to a solar farm are more likely to see modest declines in value. Buyers may be put off by the industrial appearance, particularly if it contrasts sharply with an otherwise residential setting.
Example: In suburban New Jersey communities, visible solar farms without tree buffers or fencing saw greater property value reductions compared to rural areas with natural screening.
2. Zoning and Land Use Compatibility
The degree to which solar development aligns with local zoning laws and land use expectations plays a big role. In agriculturally zoned areas, a solar farm is often viewed as a compatible use. In residential zones, however, residents may see it as an intrusion.
Insight: According to the American Planning Association, clear local land-use policies that outline where solar farms can be sited help minimize conflict and maintain property value stability.
3. Community Engagement and Economic Benefits
Solar developers who proactively engage with the local community—offering tax revenue, donations to local schools, or even shared solar programs—can foster goodwill that offsets potential concerns.
Case in Point: A project in Minnesota provided a $25,000 annual payment to the school district and installed dense tree buffers around the site. Result: little to no local opposition and no measurable impact on nearby home prices.
What Other Studies Say
While the LBNL study is the most comprehensive, several others provide useful perspective:
- University of Rhode Island (2020): Found homes within 1 mile of solar farms in Rhode Island and Massachusetts saw an average 1.7% decrease in value. Impact dropped off significantly after 1 mile.
- Loyola University Chicago (2022): Studied 70 solar farms in the Midwest. Found 0.5–2% value increases in rural areas, attributed to non-visible installations and local economic gains.
- Journal of Real Estate Research (2019): Suggested setbacks of at least 100–300 feet and landscaping reduced perceived negative impacts.
These findings underline that distance matters, as does local context.
What Buyers, Sellers, and Communities Should Know
For Homeowners Considering a Sale
- Disclose the presence of nearby solar farms honestly.
- Invest in landscaping or fencing to block visibility, which can boost perceived value.
- Provide potential buyers with factual information and third-party studies to reduce fear-based objections.
For Prospective Buyers
- Visit the property and surrounding area. Look at whether the solar installation is visible, buffered, or screened.
- Ask about the solar farm’s maintenance schedule, operational hours, and any community agreements.
- Request comparative market analysis (CMA) from your real estate agent using local sales near solar farms.
For Developers and Local Governments
- Work with planning commissions to zone appropriately.
- Provide visual buffers such as trees, berms, and fencing.
- Include community benefit agreements (CBAs) such as annual payments to local governments or schools.
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FAQs About Do Solar Farms Hurt Your Property Value
Are property values near solar farms always lower?
No. Many studies show little to no impact on property value, and in some rural areas, property values have increased slightly due to clean energy interest and developer incentives.
Does it matter how far away the solar farm is?
Yes. Homes within 0.5 miles are most affected. Beyond 1 mile, most studies find no measurable effect.
Can landscaping or buffers really make a difference?
Yes. Dense vegetative buffers can significantly reduce visual impact and protect property value. Many planning departments now require minimum setbacks and screening.
Are there long-term effects on resale potential?
There is no consistent evidence of long-term negative resale trends. In well-planned areas, resale values remain stable. The key factor is visibility and perception, not the farm’s mere presence.
Do solar farms lower taxes or change school funding?
Solar farms typically increase property tax revenue, some of which supports local services and schools. In certain states, developers make voluntary payments in lieu of taxes (PILOTs) to benefit local infrastructure.
