As Midwest communities consider the approval of utility-scale solar projects, the residents, farmers, and business owners near the proposed solar projects often fear that their property values will go down. But new research from Loyola University shows that solar projects have a positive financial impact on nearbyproperty values, particularly for solar projects installed in rural areas.
The comprehensive study looked at 70 solar farms built acrossthe Midwest from 2009 to 2022. The researchers found that, on average, properties located near utility-scale solar farms saw an increase in value of between 0.5% to 2.0%.
This trend was especially noticeable with smaller solar projects are under 20 megawatts (MWs). These small-scall projects actually increased the value of land near solar projects by 2%. These objective findings should help to address the concerns of neighbors and zoning boards considering community solar and other small scale utility projects, which are generally under 5 MW.
Key Factors Behind the Property Value Increase
According the to the researchers, there are several reasonswhy property values tend to rise near solar farms:
1. Economic Activity: Utility-scale solar projectsbring new sources of tax revenue into local communities. These funds often gotowards improving public services, such as schools, fire departments, and local infrastructure, all of which contribute to a better quality of life for residents. When local amenities improve, property values follow suit.
2. Job Creation: Solar farms create jobs both during the construction phase and in ongoing maintenance and operations. In rural areas, these projects can stimulate the local economy by providing employment opportunities and contracts for local businesses.
3. Environmental and Visual Benefit: Unlike traditional power plants, solar farms produce no emissions or pollutants, which can make nearby properties more attractive. Solar farms create no noise nortraffic and are low impact compatible uses with open land. They have a low profile and many solar farms blend into the landscape, minimizing any aesthetic concerns that might have been raised by residents. In some instances, landscaping and visual buffers are installed to address any lingering concerns.
Myth-Busting: Solar Farms as a Positive Community Asset
While some may worry that solar farms are eyesores or negatively affect land use, the research suggests that these concerns are often unfounded. Utility-scale solar projects are increasingly designed to fit seamlessly into rural and agricultural landscapes. In fact, several communities have embraced solar as a way to diversify land use, particularly on farmland,without disrupting local agriculture.
For example, many solar developers are adopting “agrivoltaics”or “dual use” designs. Agrivoltaics is the practice of combining solar installationswith agriculture and grazing livestock, allowing landowners to continue farmingwhile benefiting from the steady, long-term lease payments provided by solarenergy companies.
Studies have shown that sheep and other livestock can successfully cohabitate on the same grounds as solar projects. Other research has shown that a variety of leafy vegetables, legumes, herbs, andberries can flourish due to reduced heat stress in shaded environments.
Definitive Data for Zoning Boards
For zoning boards, these positive real-estate price findings offer valuable data to inform their decisions about developing solar projects in their community. The economic and community benefits that solar farms bring—ranging from job creation to increased property values—make them an attractive option for sustainable development. Furthermore, as solar technology continues to advance, communities that invest in renewable energy infrastructure today are positioning themselves to lead in future energy markets.
If you're a landowner or zoning board member interested inlearning more about how community solar and small-scale utility solar projects can increase land value and benefit communities, we encourage you to reach outto us at Renewable Properties. Our team can answer any questions land owners have about leasing land for solar farms, and we’re always available to help zoning board members to you have the information needed to make informed decisions. Contact us at www.renewprop.com.
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