Wind farms do harm their neighbours there is "some evidence" that they cause "significant annoyance" thanks to "excessive noise". That is the conclusion of a new government report into turbines and it is a conclusion that will no doubt chime with the experiences of hundreds of people who live near turbines. So what should be done about it?
The obvious response from many will be to say that some types should be banned or perhaps that new ones should be prevented from going up within earshot of residences. But this might be a problem better solved with money.
There is already evidence that the value of houses are hit hard when turbines go up near them (something accepted by the Valuation Office Agency). That's partly to do with their effect on the view and as this review makes clear partly because of the noise annoyance of living next to them. Who would pay the same for a house next to a wind farm as an identical one not next to a wind farm? Quite.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
With this in mind, I have always been confused as to why the developers of big wind farms set up "community" funds to placate the people living around their projects. It would be much better, surely, to directly compensate the people who are most affected than to faff around building playgrounds and the like for lots of people who aren't. So why not pay part of the profits annually to those owning the nearest houses?
It could be calculated based on the present value of the pre-turbine price of the house, something that would mean that the homeowner could either continue to live in their house, neutralising the annoyance with cash, or sell it with the 25 years' worth of wind farm annuity attached (which should come to the same as the pre-farm value of the house). Problem solved.
The wind farm developers have always resisted this kind of solution on the basis that it would mean recognising that turbines have a negative effect on other people's standard of living. But if that's not up for argument any more, what's the problem with it?
PS for more along these lines see everything we have written in the past on the Land Value Tax. It is all the same sort of idea.
-
House prices to crash? Your house may still be making you money, but not for much longerOpinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
-
Prepare your portfolio for recessionOpinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
-
Investing for income? Here are six investment trusts to buy nowOpinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
-
Stories are great – but investors should stick to realityOpinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
-
Everything is collapsing at once – here’s what to do about itOpinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
-
Value is starting to emerge in the marketsOpinion If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy traditionally expensive growth stocks on the cheap, too.
-
ESG investing could end up being a classic mistakeOpinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
-
UK house prices will fall – but not for a few yearsOpinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
