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An Analysis of Property Values and Proximity to Photovoltaics Across Six U.S. States

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This study examines how building large solar power projects in six U.S. states affects the prices of nearby homes. We looked at over 1,500 solar projects and 1.8 million home sales to answer two questions: (1) How do solar projects affect home prices? (2) Does the impact on home prices depend on where the solar project is located, how big it is, or whether the home is in a city or the countryside? The study finds that homes within a half-mile of a solar project sell for about 1.5% less than homes that are 2-4 miles away. There was no significant effect on homes more than a mile away. The impact was only noticeable in certain states, for solar projects built on agricultural land, for larger projects, and for homes in rural areas. Our results suggest that policymakers should consider measures to reduce the negative impact of solar projects on nearby homes, such as compensating neighbors or using plants to shade the area. Also, policymakers should evaluate solar projects on a case-by-case basis to understand their effects on nearby homes.

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