The new agreement, called a Renewable Energy Rider, allows large energy users with multiple facilities — such as governments, school districts or large companies — to source their energy from a nearby solar plant. MGE spokeswoman Kaya Freiman said this is MGE’s first-ever Renewable Energy Rider.

“It’s an innovative model for growing clean energy in our community,” Freiman said.

Michael Vickerman, policy director for Renew Wisconsin, said the PSC’s unanimous approval creates “a live and viable way” to connect customers to off-site solar generation.

Thirty percent of the megawatts generated by the solar array will go to the city and school district. The rest will serve MGE’s Shared Solar Program, which allows MGE’s residential and business customers to purchase up to half of their annual electricity from the solar array.

One megawatt of power will go to the school district, 0.5 of a megawatt will go to the city of Middleton and 3.5 megawatts will be reserved for the Shared Solar Program, according to MGE.

MGE doesn’t know when construction on the project will start or how long it will take, Freiman said.