Li, Zhiyun and Zhang, Wendong and Ortiz-Bobea, Ariel, The Impact of Large-scale Solar Development on Farmland Values: Evidence from New York State (August 30, 2024). Cornell SC Johnson College of Business Research Paper, Available at SSRN: https://ssrn.com/abstract=4942012 or http://dx.doi.org/10.2139/ssrn.4942012

Large-scale solar energy projects compete for land with agriculture, potentially leading to undesired farmland loss and appreciation. The study authors looked at more than 12,000 parcel-level farmland transactions between (2007-2021) before and after 2015 when policies like the Shared Renewables Program (SRP) boosted the demand for land for large scale solar projects.

They found that large parcels within 2 miles of substations sold for 15-18% more than comparable parcels located further away a few years after the SRP program’s implementation. This effect is absent for small parcels (< 10 acres) suggesting their finding is unrelated to housing demand. They also found that farmland parcels within 2 miles of substations in regions where solar developers can fetch a higher electricity price become ~20% more expensive than comparable parcels in low-electricity-price areas a few years post-SRP.