A new research brief from the Center for Business and Economic Research (CBER) at Ball State University found no statistically significant negative impact on residential property values near large-scale wind or utility-scale solar projects in Indiana.

The briefing "Indiana's Renewable Energy and Residential Real Estate Markets" summarizes findings from two major studies conducted by the Community and Business Economics Research (CBER), which examined wind and solar energy development projects in Indiana and their impact on nearby housing values. Researchers utilized home sales data from 2004 to 2024 to compare residential property prices before and after the operation of renewable energy projects, as well as at varying distances from these projects.

"This study provides specific data from Indiana on the common issues communities face when considering renewable energy projects," said Dr. Dagney Folk, director of CBER research. "Property value is an unquestionably important consideration for homeowners and local officials. Our analysis allows these discussions to be grounded in our observations of the real estate market around existing wind and solar development projects across the state."

In the wind power analysis, researchers examined the sales of residential properties near commercial wind turbines in three regions of Indiana. The model found that these wind turbines had no statistically distinguishable negative impact on the sale prices of nearby houses.

Solar energy analysis also found no statistically significant negative impact on housing prices. Researchers examined sales data at varying distances from utility-scale solar projects and conducted additional analyses based on project size, urban/rural location, proximity to brownfields, and power provider type.

The study examining the temporal changes in housing prices also found no evidence of sustained declines in residential property prices following the commissioning of wind or solar power projects.

"The advantage of studying years of actual home sales data is that we can examine what happened in the communities before and after these projects were developed," said Dr. Paul Nikamp, Assistant Professor of Economics at Miller College of Business at Ball State University. "Through the different approaches we employed, the overall findings indicate that residential property values near solar projects in Indiana were not widely negatively impacted."

The researchers pointed out that their findings represent the average impact across the studied attributes and do not imply that individual attributes are immune to negative effects. They also suggested that local permitting and siting procedures designed to mitigate impacts on adjacent attributes may help explain the absence of widespread adverse effects.

This new brief is part of a broader series of studies conducted by the Center for Business and Economic Research (CBER) at Ball State University under the Indiana Renewable Energy Siting Through Engagement and Planning (R-STEP) collaboration. Earlier this year, CBER published research exploring the economic models associated with utility-scale wind and solar development in Indiana, focusing on county-level restrictions.

These studies aim to provide Indiana-specific data for state and local officials, residents, and other stakeholders in Indiana, enabling communities to make informed decisions when addressing issues related to renewable energy planning and development.

Wind energy research was conducted by Dr. Michael Hicks, former CBER director, and Seth Peyton, a former CBER researcher. Solar energy research was carried out by Dr. Nikamp, Dr. Falk, and Dr. Hicks.

The R-STEP partnership in Indiana connects local communities with research-based resources to support informed planning for large-scale renewable energy projects. This initiative is part of the U.S. Department of Energy's "Renewable Energy Siting Through Technology Engagement and Planning" program.

Dr. Faulk and Dr. Niekamp will present their research findings at a webinar hosted by Purdue University's Extension Service and the Indiana Chapter of the American Planning Association on September 16. The Zoom webinar is open to the public at no cost but requires registration.