The State Corporation Commission (SCC) has approved an application by Dominion Virginia Power (Dominion) to build and operate a 17.6MW solar electric generating facility on the Naval Air Station Oceana in Virginia Beach.

The solar facility will be constructed on 93 acres of federal property, which is currently used for farming. The output of the facility will be sold to Virginia state government through a negotiated purchase agreement for 25 years.

The project has been structured so that Dominion recovers its costs exclusively through contracts negotiated with the Commonwealth of Virginia and not from the company’s retail electric customers. The estimated cost of the project is $39.6 million.

The Oceana Solar Facility is expected to begin generating electricity in December.