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Monday, Feb. 9, 2026

Can nearby solar farms reduce property values?

Sue Bin Park, Skeptical Science
yes

Property values can decline from close proximity with utility-scale solar farms, but the losses are modest and less than from nearby fossil fuel plants.

One 2023 study of 1.8 million homes found minor impacts on property values. Homes within 0.5 miles of solar farms experienced around 1.5% price reductions; homes more than one mile away received no significant effects. 

Another study of 400,000 transactions found an average value decrease of 1.7% within one mile of a solar farm. Most recently, 2025 research indicated a slightly higher decrease of 4.8% for residential property within three miles of utility-scale solar projects.

Declines largely occur in suburban areas with greater population density and thus competition for space; rural communities experience little comparable impact.

In comparison, a study of 92 plants found property value decreases of up to 7% within two miles of a fossil fuel plant.

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