The federal government announced a plan to fund the construction of new solar farm in southeastern Alberta on Thursday that it says has the potential to power about 7,400 homes per year.

The project, to be located near Suffield, Alta., will create 23 megawatts of generating capacity "using a novel approach designed to capture energy from both sides of the solar panel while it tracks the sun's daily trajectory," said a release.

Natural Resources Minister Amarjeet Sohi, who was in Calgary for the announcement, said the project is part of Ottawa's strategy to forge ahead with new technologies.

"On top of providing new sources of electricity to the local grid, increased awareness of renewables will help spur investment and support at the provincial, territorial, municipal and utility levels," he said.

The Suffield Solar Project will be developed and owned by Canadian Solar and its subsidiary, Suffield Solar LP. It will employ about 250 people during construction.

Funding for the project is being provided through Natural Resources Canada's Emerging Renewable Power Program.

The program has committed $15.3 million over two years for the $49-million solar project.

Suffield is a hamlet in southern Alberta located roughly 250 kilometres east of Calgary along the Trans-Canada Highway.