The impacts of community solar projects on housing prices: Evidence from Maryland, the U.S

Community solar projects (CSPs) lower the cost threshold of residents' access to clean solar energy, especially for the low- and middle-income households and disadvantaged communities with low homeownership rates, and contribute to advancing renewable energy utilization in the broader public and reducing more household carbon emissions. While the impacts of solar farms and rooftop photovoltaic systems on local property prices are well-documented, the effects of CSPs remain largely unexplored. This paper provides empirical evidence on the impact of CSPs on nearby housing prices in Maryland based on multiple approaches, including a hedonic price model with fixed effects, propensity score matching, instrumental variable, and difference-in-differences methods. We find that CSPs are associated with a 1.8–2.1% average increase in surrounding housing prices, with stronger effects in urban regions, Democratic-leaning regions, regions with higher income and education levels, and near large-scale CSPs and CSPs built on brownfield. These findings reveal that CSPs can generate synergistic economic, social, and environmental benefits, highlighting their role as a promising mechanism for promoting renewable energy utilization and global sustainable development goals while enhancing community well-being. For policymakers and investors, integrating CSPs into broader sustainable development strategies and considering these local preferences can help expand CSP development, facilitate solar energy access among broader communities, and contribute to global sustainable development goals. • Community solar projects (CSPs) bring a 1.8–2.1% price premium to nearby properties. • The premium is concentrated in urban, high-income, and highly educated areas. • Houses near large-scale CSPs and CSPs on brownfields see stronger premiums. • CSPs generate similar economic benefits as rooftop PVs with broader accessibility. • CSPs symbolize green neighborhoods, attracting eco-conscious residents to live there.