Utility-Scale Solar Farms and Agricultural Land Values

Nino Abashidze and Laura O. Taylor


Property value models are used to examine how utility-scale, ground-mount solar farms affect nearby agricultural land values. Results indicate that solar farms do not have direct positive or negative spillover effects on nearby agricultural land values. However, results also suggest that solar farm construction may indirectly affect agricultural land values by signaling the land’s suitability for future solar development. Specifically, results indicate that proximity of agricultural land to electric transmission lines may be positively valued after a solar farm is constructed nearby.

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