A new study conducted in Texas shows no evidence of negative market impact for residential properties near utility-scale solar facilities.
Commissioned by Conservative Texans for Energy Innovation (CTEI) in partnership with the Advanced Power Alliance and the Solar Energy Industries Association, the study analyzed property sales in four counties in Texas that were near utility-scale solar projects. In all counties studied, the sales prices and marketing times of residential properties located near solar projects were generally consistent with residential sales further away.
“This first-of-its-kind study on solar energy and property values underscores what we know to be true in Texas, utility scale solar projects have a positive impact on our local economies,” said Matt Welch, state director of CTEI. “As Texas continues to lead on renewable energy, it is crucial our leaders have access to objective data to help dispel misinformation and false narratives.”
Conducted by Real Property Analytics, the “Study of Residential Market Trends Surrounding Six Utility-Scale Solar Projects in Texas” analyzes six utility-scale solar projects at various stages of development across a diverse geographic area in Texas spanning four counties. Key indicators of shifting markets — price per interior square foot, sales to price list ratios and Days on Market (DOM) — of residential sales near the projects were compared to residential sales located further away.
“As the market for solar and other renewable energy production grows, it is important to understand how their presence impacts surrounding communities,” said Erin Kiella, PhD, who served as the lead author of the report. “Studying these projects using market data helps bring clarity on these issues.”
Four Texas counties — Tom Green, Bell, Lamar and Bee counties — were studied to understand how real estate markets may be affected when located near utility-scale projects. Sales were analyzed at varying stages of the project, including announcement and construction, because markets can react differently during each phase.
Key findings include:
- The market trend analysis of six utility-scale solar projects across a diverse geographic study area in Texas showed no evidence of negative market impacts for nearby residential properties. The analysis showed a robust and competitive market still exists for these nearby residential properties once solar projects begin development and after they are operational.
- Sale metrics — price per interior square foot, sale to list price ratios and DOM — in areas close to the solar projects were compared to sales located further from solar projects. Results showed the two areas trended similarly.
- Study results were consistent across varying locations, residential markets, and project stages.
- Market interviews with local market experts and agents associated with sales proximate to solar projects also confirmed the market trend results.
A full copy of the report is available at the CTEI website.
Texas has more than 18,800 MW of installed solar, accounting for 11.9% of the total installed solar capacity in the United States. Currently ranking second in installed capacity, Texas is positioned to become the nationwide solar leader as installed solar capacity is expected to grow by 4 GW over the next five years.
— Solar Builder magazine
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