Booming solar energy drives land value enhancement: Evidence from 648 photovoltaic projects in China

Abstract

Land use of photovoltaic (PV) facilities has always been a pressing research field, as the transition to renewable energy requires balancing between land productivity and energy generation. A comprehensive assessment of PV land use benefits is crucial for informed deployment decisions. Here, we propose a multidimensional land use analysis framework, focusing on power generation, production, ecology, and their co-benefits, aiming to assess the impact of PV applications on land use and to quantify the ensuing changes in land value. The results show that PV deployment significantly increases land values. Specifically, the power generation value of PV land in China ranges from 1.90×10⁵ to 5.09×10⁵CNY/hm²; the production value brought by agricultural development ranges from 6.28×10⁴ to 1.53×10⁵CNY/hm², and the value of ecosystem services provided by the land ranges from 2.43×10⁴ to 8.95×10⁴CNY/hm². From a power station type perspective, the development potential for agricultural PV systems in optimizing layout and flexible use is infinite. This system can create tremendous increments in land value. Building desert-based PV plants provides the highest appreciation multiple for arid areas’ land resources while bringing sustainable economic and ecological prosperity. This study contributes to a better understanding of the current impact of PV deployment on land resources, and helps policymakers and stakeholders find intrinsic linkages between energy and the economy, ecology, and the environment, thus guiding and steering a more sustainable development of renewable energy planning and land use optimization in China.