While many of Australia's mining regions have been hit hard by the resources sector downturn, solar is providing rays of hope for the small town of Collinsville in north Queensland.

Three hours south of Townsville, Collinsville has a proud, long history of coal mining, boasting it had the last working pit ponies in Australia — up until 1990.

But this coal-fired town is poised for a rebrand.

Solar companies are vying to take advantage of the region's 300 days a year of perfect sunshine.

In August, the Australian Renewable Energy Agency announced it would provide $9.5 million to both Edify Energy's 70MW Whitsunday Solar Farm and RATCH Australia Corporation's 43MW Collinsville Solar Project.

Edify Energy director John Cole said, given the potential size and scale of projects in the region, Collinsville could be the solar capital of Australia.

"It's a very good place for solar because of the radiation levels in north Queensland," he said.

"For example, our site in Collinsville will produce double the amount of power than a project in the UK, and about 5 to 10 per cent more than in New South Wales or Victoria."

Plan to pump energy into Queensland grid

Paintings on buildings in Collinsville in north Queensland of working pit ponies. ( ABC News: Ben Millington )

Another advantage in Collinsville is a decommissioned power station that sits on its outskirts.

Both projects plan to utilise the infrastructure to pump energy straight into the Queensland grid.

Edify Energy plans to start the construction of phase one this year.

A nine-month build time is expected and 200 jobs will be offered to a town in desperate need of them.

Local councillor Peter Ramage said the last four years had been devastating for the community.

"Seeing families having to leave to find employment in other parts of the mining industry… It really knocked the town about — businesses closing down, two hotels closed in Collinsville — that would have been unheard of 15 year ago," he said.

"The solar will be a good boost for the town — it's definitely a step in the right direction."

Coal mines to remain Collinsville's big employer

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However, once built the solar farms will offer jobs in maintenance and security to fewer than 10 people, leaving the town still heavily reliant on the its three coal mines.

The mines are in a cycle of sporadically hiring and laying off workers depending on movements in the price of coal.

But locals are still optimistic.

Publican Janet Lobegeier said it would mean hundreds of workers to build these solar farms.

"It'll be only a few to maintain them, but it will be a peak for the town," she said.

"Over the years we've seen lots of jobs come and go, pipelines and railway lines, so we're pretty used to this up-and-down type of market.

"Make the most of it while it's going good and tighten your belt when it's tough."

Edify Energy to initiate extended rollout

The good times could last for some time if the solar companies fulfil their plans.

Edify Energy's $122 million phase one plant will cover 500 acres, but there are plans to continually roll out more solar phases across its huge 10,000-acre site.

Queensland Energy Minister Mark Bailey signalled they would have the Government's support to do so.

"The Collinsville solar farms are important contributions to us managing a clean energy economy and transitioning to a 50 per cent renewable energy mix over the next 14 years," he said.

"We're at 7 per cent now — 14 years is a considerable amount of time and we're not mucking about, we're getting on with this."

While solar is on the horizon, Collinsville is still very much dependent on coal.

Locals celebrated the recent announcement of 200 jobs at Glencore's Collinsville Coal Mine, while Adani's Carmichael coal mine in the Galilee Basin is widely seen as the potential saviour of the town, as well as north Queensland.

But Councillor Ramage said he was not going to turn his nose up at solar.

"We used to power the north with the coal-fired — I can't see any reason why we can't power the north with solar," he said.

"I think it'll be a massive tourist attraction and that's the way we've got to diversify here in Collinsville, look at everything."