US-based Nautilus Solar Energy has signed a power purchase agreement (PPA) with city of Lordsburg for a 1.5MW solar photovoltaic project in New Mexico.

As part of the deal, the project will supply solar electricity to the city’s wastewater plant, fluoride and pumping station, police Station and city hall.

Over the 20-year term of the PPA, the project is expected to save the city around $3.5m, according to Nautilus.

Nautilus Solar Energy CEO James Rice said the Lordsburg project provides significant savings in electricity costs with no local incentives or subsidies and truly represents retail parity.

"We are looking forward to working with other municipalities and customers in the Southwest to deliver solar electricity that provides cost savings and environmental benefits," Rice added.

Nautilus, which owns and operates distributed generation and utility-scale solar electric systems, has projects in New Jersey, Connecticut, Maryland, California, Florida and Canada.