Solar and Surrounding Property Values – What Research Shows

Solar Farms and Property Values: What Research Shows

If your community is considering or welcoming a new solar project, it's natural to have questions about how this type of development might affect surrounding property values. The good news: multiple independent studies across the United States have consistently found that solar farms do not reduce the value of neighboring properties. In fact, solar projects are designed to be low impact, quiet, and visually unobstructive, blending into rural and suburban landscapes with minimal disruption.

What the Data Says:

No Consistent Negative Impact

Numerous studies by the University of Rhode Island, Lawrence Berkeley National Laboratory, CohnReznick, and others show no consistent evidence that solar farms negatively impact the value of adjacent homes or farmland. In many cases, property values remain stable or even increase as communities benefit from new tax revenue, improved infrastructure, and cleaner energy.

A 2018 study of solar farms in Indiana and Illinois found "no consistent negative impact" on the value of adjacent properties. In fact, properties within 1,320 feet of solar projects sold for an average of 1.92% more than comparable properties not near solar projects (Gaur et al., 2020).
The same study found no impact on property values at all in rural communities with solar projects nearby (Gaur et al, p. 17, 2020).
The most comprehensive study to date, analyzing over 1.8 million home transactions near 1,500 large-scale solar projects across six states, found only minor impacts: homes within 0.5 miles of a solar project only saw a price reduction of just 1.5% while homes more than a mile away saw no statistically significant effect at all (Elmallah et al., p. 13, 2023).
Unlike solar, studies consistently find that homes located near coal, oil, or gas plants experience lower resale values – by as much as 4 to 7% — due to concerns about noise, pollution, and health risks (Davis, 2011).
By contrast, solar projects produce clean energy without emissions, odors, or heavy traffic, making them more attractive neighbors for landowners and residents alike.

Why Solar Can Benefit Property Values

Solar projects help property values remain stable by generating new tax revenue for schools and public services, allow landowners to keep and maintain their land within the community, and increase the local supply of electricity to meet growing demand. These benefits strengthen the community's economic foundation and support long-term stability.

Building Value for Generations

Most solar projects across the U.S. have a neutral or even positive effect on property values, especially as communities benefit from new tax revenue, improved infrastructure, and cleaner energy.

We're committed to building solar projects that create lasting economic value for landowners and their communities. With over 750 projects completed nationwide, our experience shows that solar is a win-win: it supports local economies, protects property values, and leaves behind a cleaner, more sustainable world.

Curious about the impact of solar on property values in your area? Discover more at Community Benefits | New Energy Equity.

Sources

Eisenson, Matthew, et al. "Rebutting 33 False Claims about Solar, Wind, and Electric Vehicles." Columbia Law School Scholarship Archive, scholarship.law.columbia.edu/sabin_climate_change/217/. Accessed 8 Apr. 2026.

Patricia L. McFarr et al, Property Value Impact Study Proposed Solar Farm McLean County. IL, CohnReznick (2018)

Vasundhara Gaur et al., Property Value Impacts of Commercial-Scale Solar Energy In Massachusetts And Rhode Island, DEP'T. ENV'T. AND NAT. RES. ECON. U. R.I., 4 (2020), https://www.uri.edu/news/wp-content/uploads/news/sites/16/2020/09/PropertyValueImpactsOfSolar.pdf.

Salma Elmallah et al., Shedding Light on Large-Scale Solar Impacts: An Analysis of Property Values and Proximity to Photovoltaics https://doi.org/10.1016/j.enpol.2023.113425.

Lucas Davis, The Effect of Power Plants on Local Housing Value and Rents, 93 REV. ECON. STAT. 1391 (2011), https://doi.org/10.1162/rest_a_00119