Solar farms are increasingly being integrated with sheep farming. Photo: Spark Renewables.
Solar farm projects in the Riverina and near the ACT have come under fire recently, with nearby residents claiming they pose contamination risks and devalue surrounding properties.
But are these claims backed by evidence?
After consulting experts and diving into the research, Region found the claims to be generally false. Risks appear to be minimal, while there’s no systematic evidence of property prices falling near solar farms as they have for properties next to coal mines.
Do solar farms impact property prices?
PRD Real Estate published a report in 2022 which looked at the impact nearby renewable energy projects have on property prices. Their analysis found that in six NSW and Victorian local government areas (LGAs) with major renewable energy projects (either wind or solar), average housing prices rose by more than 35 per cent over the past five years.
Their research included the Riverina town of Griffith, where housing prices have continued to skyrocket.
“While residing within 100 m of a renewable energy plant may not be ideal, the surrounding LGA strongly benefits through the drop in energy prices,” the report stated.
“Property values rise due to the increased demand created in the area. The value of a home may also increase with the installation of solar panels.”
Australia Institute research director Rod Campbell told Region international research found minimal value reductions (1.5 to 2.3 per cent) in some nearby homes, which were typically limited to properties within one kilometre of a new project.
While direct neighbours of solar farms were justified in wanting to be kept in the loop, the economist said, in his opinion, many people became involved in the conversation ”in bad faith”.
“If people are serious about the impacts on regional NSW, then they should’ve been around in the last 15 or 20 years commenting on [coal projects],” he said.
“To have your Michael McCormack, your Barnaby Joyce and Matt Canavan’s jumping up and down saying they’re worried about regional Australian property values and solar farms … it’s nonsense.
“These people have never seen a coal mine they didn’t like. They didn’t give a stuff about what those things did to people’s property values.”
Climate Energy Finance director Tim Buckley told Region he had not seen any systematic evidence that solar farms devalued neighbouring properties in his 30 years analysing financial markets.
“If anything, I’ve seen the opposite,” Mr Buckley said.
“It’s in the hundreds of millions of dollars over the life of the project.”
When Mr Campbell spoke to residents involved in the Rocky Hill coal mine case, they were dealing with a complete loss in property value.
“Their properties had become completely unsaleable,” he said.
“They had lost 100 per cent of the value of their homes, including residents who needed to either sell or mortgage against their homes to move into aged-care facilities.”
Are contamination risks overblown?
Australian National University Engineering Emeritus Professor Andrew Blakers described the claim that solar panels can cause contamination as “fossil fuel-driven nonsense”.
“Solar panels are steel and glass, basically,” he said.
“There’s less contamination than the average farmer who brings in a tractor to plough a field to grow wheat and spills oil, and does it every year.”
According to the Clean Energy Council, large-scale photovoltaic (PV) solar panels are 95 per cent recycled materials that last 25 to 30 years. They naturally degrade or lose their efficiency over time, but are expected to still produce 85 per cent of their original capacity even at 30 years.
The International Energy Agency confirmed that solar panels pose minimal health risks given the trace amount of lead, and are mostly from improper disposal.
The ANU expert said hosting solar farms could be a “cash crop” for farmers.
Residential properties near wind farms will sometimes receive thousands in compensation, and solar companies are now offering some farmers around $1500 per hectare per year in rent.
“They now have two sources of independent income,” Professor Blakers said.
“If it’s a drought, then the solar panels are generating more income because it’s sunny.
“Increasingly, solar farms are integrated with sheep farming.”
Professor Blakers said solar panels provided sheep with shade in hot weather and shelter during cold conditions.
“The vast experience is that there is no risk,” he said.
“How is it different to have some solar panels in a field along with sheep, compared with solar panels on your house roof, directly above where you’re sleeping?”
