A new national study by Virginia Tech has revealed an unexpected downside of utility-scale solar farms: falling home values. Properties located within a 3-mile radius of these massive solar installations experience an average 5% decline in value shortly after the farms are built — whether or not the homes have a direct view of the panels.
These aren’t your average rooftop panels or suburban solar add-ons. The study focused on large solar complexes that cover hundreds of acres, usually located in rural or semi-rural areas where land is abundant and development is easier — though not always welcome.
Massive Scope, Clear Impact
The research team reviewed nearly 9 million real estate transactions across 3,700 solar facilities nationwide, making it one of the most comprehensive studies of its kind. The findings indicate that proximity, rather than visibility, is the key driver behind declining property values.
“We cannot just dismiss those impacts,” said Zhenshan Chen, assistant professor at Virginia Tech, in an interview with Cardinal News. “Instead we need to actively manage it. Policymakers, solar developers and communities, arguably they all have some interest in this message.”
The Green Energy Paradox
While solar energy helps reduce carbon emissions and paves the way for a cleaner future, the financial implications for nearby homeowners can’t be ignored. For those trying to sell their homes soon after construction of a nearby solar farm, the dip in value can be a real blow. Although prices tend to recover within 10 years, the short-term loss is significant for those not planning to stay long-term.
Surprisingly, whether or not a home actually overlooks the solar panels doesn’t make a big difference in value loss. The study carefully controlled for factors like elevation, terrain, and line-of-sight, ensuring that the results focused on actual proximity rather than visual impact.
Winners and Losers in the Land Market
Not all nearby properties are affected equally. Agricultural and vacant lands located within 2 miles of solar facilities saw a 19% increase in value, thanks to high interest from developers looking to expand. Additionally, homes on larger lots (5 acres or more) were mostly unaffected by the value drop.
However, standard residential subdivisions — particularly those in fast-growing regions such as rural Virginia — are bearing the brunt of the market shift. For these homeowners, the rise of solar power is coming with a steep trade-off.
Policy Challenges Ahead
The findings arrive at a time when states like Virginia are pushing toward carbon-free electricity, especially under the mandates of a 2020 law accelerating clean energy goals. The study was published in the Proceedings of the National Academy of Sciences and co-authored by economists and analysts from Virginia Tech and the University of Rhode Island.While the data is clear, the researchers refrained from drawing one-size-fits-all conclusions. The complex balance between sustainability and real estate value remains a challenge — one that will require thoughtful collaboration between developers, policymakers, and communities.
