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Diminution in Value — Wind Turbine Analysis 

Author:  | Ontario, Property values

Conclusion – Property Purchases and Re-Sales

Market evidence suggests that ‘dwelling properties’ will be harmed or injured by the construction, use, and maintenance of wind turbines situated on properties located in the vicinity. Real or perceived nuisances resulting from wind turbines produces buyer resistance that results in price diminution.

Price diminution due to the Melancthon Wind Facility: 133 wind turbines
ID 15797 – 375557 6th Line, Amaranth −48.27%
ID 15798 – 97121 4th Line, Melancthon −58.56%
ID 15799 – 504059 Highway 89, Melancthon −23.24%
ID 15800 – 582340 County Road 17, Melancthon −26.66%
ID 16339 – 582328 County Road 17, Melancthon −37.30%
Median Loss in Market Price −37.30%
Average Loss in Market Price −38.81%

The erection of a wind turbine creates apprehension in the general public, which makes the property less desirable and thus diminishes the prices of neighbouring property. Continuing scientific uncertainty over the adverse health consequences of wind turbines only serves to perpetuate the debilitating effect of wind turbines on property prices.

By including the Transfer of Easement in Gross in the deed/transfer of the properties sold by Canadian Hydro Developments, Inc., it is reasonable to conclude that Canadian Hydro Developers, Inc. was fully aware of problems associated with ‘heat, sound, vibration, shadow, flickering of light, noise (including grey noise) or any other adverse effect or combination thereof resulting directly or indirectly from the operation of the Transferee’s wind turbine facilities situated … within the Townships of Melancthon and Amaranth, in the County of Dufferin …’ and that the turbines ‘may affect the living environment’.

The covenants imposed by Canadian Hydro Developments, Inc. and accepted by the five buyers suggest an official admission by Canadian Hydro Developments, Inc. that there are living environment issues with the result that there is a diminution in price as a result of wind turbines.

It is also reasonable to assume that a property that has a wind turbine erected on it will suffer a similar price diminution and will be injuriously affected.

The Future: Given that wind turbines are a relatively new phenomenon in Ontario (2005), it may be that in the future a buyer will simply refuse to purchase a property within the vicinity of a wind turbine. If there is no buyer, there may be no value.

Download original document: “Diminution in Value – Wind Turbine Analysis

This material is the work of the author(s) indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this material resides with the author(s). As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Queries e-mail.

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