MILDURA'S tourism claim-to-fame has finally paid off - with a $100 million solar jackpot.

The city which brags about having more sunshine than Queensland's Sunshine Coast will now be home to Australia's largest solar power station.

Premier John Brumby was in Sunraysia yesterday to announce the government would back a bid by energy company TRUenergy to develop a major solar plant south of Mildura with $100 million for renewable energy.

Mr Brumby said TRUenergy's proposal to build the Mallee Solar Park - which would create 200 jobs during construction and 20 permanent jobs - is expected to annually deliver 345 gigawatt hours of clean electricity, generating enough power to run 60,000 homes each year.

Mildura mayor Glenn Milne said the city was "right behind TRUenergy" on the project.

He said a council delegation had met with TRUenergy's partner First Solar in America, a visit which "put Mildura on their radar".

"This is absolutely sensational for the town, but of course it is all still dependent on Canberra's slice of the funding, which should come through early next year," Cr Milne said.

"Mildura is happy to lead the nation in this area, and for us it has the attraction of technology and tourism as well as social and financial benefits."

Under TRUenergy's proposal a photovoltaic plant will almost certainly be built on the preferred 600ha site about 10km south of Mildura, with construction by Bovis Lend Lease in four stages between 2012 and 2015.

Energy and Resources Minister Peter Batchelor said TRUenergy's proposal was selected through an independent tender from five applicants after it submitted an outstanding proposal under the Victorian Large Scale Solar Project.

"This project will use the latest in solar photovoltaic technology, utilising flat-plate, thin film photovoltaic panels which will be made by First Solar, a US-based company," Mr Batchelor said.

"It will build on Silex's large-scale demonstration photovoltaic solar project planned for near Mildura which is being supported by a $50 million government grant."