Parkes MP Mark Coulton, who attended yesterday's ceremony to mark the milestone, said Nyngan's climate made it ideal for a large-scale solar project.

"When finished, the Nyngan Solar Plant is expected to produce approximately 233,000 megawatts of clean electricity each year," he said.

"It has been necessary to support large-scale solar projects, like this one at Nyngan, for the industry to develop and mature in Australia.

"The Nyngan project signifies a great step forward in renewable energy production for the region and for the state of New South Wales."

The federal government had made a significant investment in renewable energy, including $166.7 million for the Broken Hill and Nyngan solar Plants, Mr Coulton said, and that had attracted considerable co-investment from the private sector and state governments.

He said the Australian Renewable Energy Agency (ARENA) had provided more than $1 billion in funding towards renewable energy research and projects across Australia.

Minister for western NSW Kevin Humphries and Parliamentary secretary for renewable energy Leslie Williams hailed the development at Australia's largest utility-scale solar plant as marking a new era in renewable energy production in Australia.

"Building a strong renewable energy industry is vital to improving our environment, supporting employment and helping to grow the NSW economy," Mr Humphries said.

"The installation of the first of the approximately 1.35 million advanced thin-film solar PV modules that will make up the Nyngan Solar Plant is a momentous occasion that truly confirms NSW's claim to be leading the nation in the development of renewable energy.

"Once up and running, the Nyngan Solar Plant will produce enough renewable electricity annually to supply more than 33,000 homes."

The NSW Government had contributed $64.9 million towards the development of the 102 MW Nyngan Solar Power Plant and its sister site at Broken Hill by AGL Energy Ltd.

Mrs Williams said the project would play a vital role in contributing to the state's energy needs.

"NSW has vast solar resources and has long been a standout leader in photovoltaic research; we are now taking the next step and becoming a standout leader in renewable energy development."

The construction of the plant was expected to employ up to 300 people during the peak of construction, with most coming from the surrounding region.

"The contribution of this project to Nyngan and western NSW cannot be overstated," Mr Humphries said.

"This development will create jobs, provide thousands of households with affordable, renewable power and inject around $137 million into the local economy."