Building of the controversial solar farm at Culcairn in the NSW Riverina is set to begin in the new year following the signing of a building contract.
The $636 million project has been embroiled for years in a community debate over the loss of prime agricultural land.
French company Neoen says sheep will graze between the solar panels across the 1039 hectare (2567 acre) project about 5okm north of Albury.
The 350 megawatt plant - which would produce enough energy to power 160,000 homes - is expected to be operational in 2026.
In 2021, the Independent Planning Commission dismissed concerns the solar development would remove farm land, finding the "inherent agricultural capability of the land will not be affected in the long-term".
It said during the project, only 25 per cent of the site would be removed from agricultural production and Neoen proposed managing the site for sheep grazing.
A construction contract had been signed with Bouygues Australia.
The project will be one of the largest solar farms in NSW once completed.
The start date of the building is expected to be in early to mid-2024.
Neoen plans to contract the majority of the electricity through purchasing agreements.
"The solar farm is expected to generate enough energy to power 160,000 homes, more than double the number of dwellings in the Riverina region," a spokesman said.
"It will deliver a significant boost to the regional economy, with over 400 construction jobs expected as well as seven permanent positions once it starts operating.
"As a long-term owner and operator, Neoen is committed to sharing benefits with the local community and will implement a program totalling $10 million over the asset's lifetime."
Neoen Australia chief executive Louis de Sambucy said it was an essential project to the company as the state moves to halving carbon emissions by 2030.
