Are Utility-scale Wind And Solar Decreasing Property Valu…

Any NIMBY opponent of utility-scale solar or wind will tell you that allowing large generation projects near a community will lower nearby property values, but recently released research indicates that might not be the case – at least in Indiana.

A 10-year study from the Center for Business and Economic Research (CBER) at Ball State University found that utility-scale solar and wind projects had “no statistically significant negative effects” on home prices in the state. A summary brief, Indiana Renewables and the Residential Real Estate Market, compiled findings from two larger CBER studies examining wind and solar developments and nearby home values across Indiana. Researchers used home sales data from 2004-24 to compare residential property prices before and after renewable-energy projects became operational and at varying distances from those projects.

“This research provides Indiana-specific data on an issue that often arises when communities are considering renewable-energy projects,” said Dr. Dagney Faulk, director of research at CBER. “Property values are understandably an important consideration for homeowners and local officials. Our analysis allows those discussions to be informed by what we have observed in housing markets around existing wind and solar developments across the state.”

Opponents of large wind projects typically cite negative factors viewshed changes, shadow flicker, signal interference, noise and vibration, lights, drainage, and decommissioning issues, the study said. Opponents of solar, on the other hand, worry about the need for large plots of land, viewshed changes, displacement of greenfields or farmland, loss of open space, impacts on ecosystems and animal migration patterns, fire risk, drainage, and noise. But CBER determined these fears may be overblown.

Cost Comparison

To assess the impact of wind projects on property values in the state, the researchers compared residential sales near commercial wind turbines in three regions of Indiana. Since Indiana’s first utility-scale wind project went online in 2008, the state has added more than 1,700 wind turbines, all located in rural areas with “limited” nearby residential development, according to the report’s authors. Overall, the state has a total wind capacity of 3,857 megawatts (MW) spread across 20 wind farms. Indiana has 126 solar farms providing a capacity of 5,293 MW.

For the wind analysis, researchers examined each of the three regions separately and found “no statistically discernable negative effect” on the sale of nearby homes. In the East Central model, sale prices were 11.5% lower for properties within one mile of a turbine compared to properties three to five miles away. However, the researchers noted that these results are not “statistically significantly different” from zero.

The study concluded that wind turbine density does not appear to affect Indiana home values and found no evidence that wind or solar projects negatively affect home sale prices over time. For solar, the study found that larger-capacity (above-median) solar projects may somewhat negatively affect home prices, but researchers noted the results are not definitive. Whether a solar project is in a rural or urban area does not noticeably affect sale prices (at least in Indiana).

A Price Increase?

Indiana homes within half a mile of solar farms operated by investor-owned utilities actually saw a 7.9% increase in sale price, while homes between half a mile and a mile away saw a 4.4% increase after the solar project became operational, compared to two to four miles away. The researchers note that this might occur because investor-owned utilities “better design and maintain their solar facilities to minimize disamenity effects.”

The CBER study notes that the effects of wind and solar on property values can vary by state. Another unrelated study found that utility-scale solar in North Carolina and New Jersey had statistically significant negative effects on property values, while California and Connecticut saw positive, but statistically insignificant effects. Other research has determined that negative effects of solar are concentrated in the Northeast, while the Midwest sees positive but statistically insignificant estimates. For wind, previous studies found no statistically significant effect on property values in areas Rhode Island or Ontario, while Northern New York state saw negative effects.

A similar study, published in 2024 by Loyola University researcher Gilbert Michaud, found that solar farms in the Midwest may actually have a slight positive effect on home values, at just 0.5% to 2%. It’s a low enough number to be insignificant, but it contrasts with a main talking point of solar opponents. Michaud’s study suggests that negative perceptions of utility-scale solar may be creating a “self-fulfilling prophecy,” leading sellers or buyers to lower prices based on speculation.

The Indiana study concludes by offering one possible explanation for the lack of negative effects on home prices: the permitting process worked, and developers minimized the negative effects of wind and solar farms as much as possible.