The plant will cover 50 acres of undeveloped land at the Kahe Generating Station and Hawaiian Electric will be responsible for operating the plant.

Hawaiian Electric power supply vice president Ron Cox said that the company is committed to building a better energy future for Hawaii.

"This is a unique opportunity to make a difference for all of our customers because it allows us to quickly develop more low-cost clean energy," Cox added.

The project is subject to the approval of the Hawaii Public Utilities Commission (PUC) and the completion of necessary environmental and cultural reviews.

The plant, which is expected to be operational by the end of 2015, will directly connect with the grid through Hawaiian Electric’s 46,000V sub-transmission system.

SolarCity Hawaii regional director Jon Yoshimura said that Hawaiian Electric’s project is living proof that solar power can protect Hawaii’s environment and strengthen its economy at the same time by providing clean energy less expensively than power generated from fossil fuels.

This is SolarCity’s second project in Hawaii. Earlier, the company secured a contract to construct a 12MW solar plant near the town of Koloa for Kaua’i Island Utility Cooperative.