The Renewable Discount: Solar Energy and Residential Property Values

With utility-scale solar facilities leading the charge among renewable energy resources in the US energy grid transition, more communities and homeowners will be subject to living near solar facilities. This study aims to measure the loss of home value due to spatial proximity to utility-scale solar facilities. Using a difference-in-differences in the hedonic framework, this study analyzes over 400,000 home transactions across 35 states from 2010-2019, combining CoreLogic property data with the Lawrence Berkeley National Laboratory’s solar facility database. Results indicate that homes within 0.6 miles of utility-scale solar facilities experience a −4.01% price decrease compared to homes between 2.0 to 3.0 miles away. This translates to an average loss of approximately $9,252 per affected property, with cumulative economic impacts exceeding $80 million across the entire sample. The results have significant implications for policymakers who are creating fair renewable energy transition policies that address the localized costs that adjacent property owners endure.