PLANS to build a $38 million solar farm near Kerang in northern Victoria have been approved.

Gannawarra Shire today announced energy company ECO for LIFE's planning application for the 30MW project had been approved.

The project on Old Echuca Rd, south of Kerang, is expected to produce 53GWh of energy enough to power 14300 homes.

The council's economic development manager Roger Griffiths said construction was expected to begin mid next year and was tipped to take about 14 months.

"The project is likely to provide significant employment and service opportunities for Kerang," Mr Griffiths said.