Sprawling out across 50 hectares and billed as Australia's largest, the Royalla solar farm could double its photovoltaic array to 100 hectares if stage two is built next year, according to planning documents.
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The ACT government called in and approved stage one of the project at Tuggeranong last week, saying it would reduce carbon emissions and generate enough solar power for 4400 homes.
Plans lodged under Commonwealth environmental guidelines refer to a two-stage project, with construction beginning on the second stage in February next year, doubling the 20-megawatt project to 40. The National Capital Authority has also given approval for a 40-megawatt farm. But proponent Fotowatio Renewable Ventures says there is no plan for stage two.
The ACT government has not received nor approved a second stage application.
Up to 60 jobs will be created in stage one's construction over six months and five jobs will be ongoing.
Andrew Blakers, director of the Centre for Sustainable Energy Systems at the Australian National University, said the 20-megawatt Royalla farm was too small to exert downward pressure on retail energy prices.
''But roof-mounted solar plus wind is putting downward pressure on wholesale [energy prices] in South Australia, where it accounts for 30per cent of electricity sales,'' he said.
Dr Blakers said the ACT government's plan for large-scale renewables to generate 90 per cent of the territory's energy consumption by 2020 would have an impact and was in line with a national trend.
''Wind and PV will probably comprise 100 per cent of new generation capacity for the forseeable future - perhaps no new base load coal, oil, gas or nuclear power stations will ever be built,'' he said.
Clean Energy Council policy director Russell Marsh said more renewables entering the mix in NSW and the ACT would eventually lower electricity prices.
He said under the GreenPower program, consumers could voluntarily opt to buy a portion of their energy from renewables.
A spokeswoman for Environment Minister Simon Corbell said ACT solar farms would sell electricity directly into the national market.
''Successful solar farms will be paid the difference between the feed-in tariff rate they were awarded and what they earn from selling their eligible power into the national electricity market [NEM],'' she said. ''This will be paid by ActewAGL Distribution, who will pass on the cost to ACT electricity consumers. This difference is expected to reduce over time as NEM prices increase.''
