A solar power farm the size of 46 football pitches will be built near Gelligaer.
The 28.7ha farm will power over 3,000 homes at its peak. Electricity produced will go directly into the local distribution network.
Caerphilly County Borough Council’s Planning Committee approved planning for the land at Hendai Farm on April 9.
The solar panels will be raised one metre off the ground, with a maximum height of just over two metres and the land will still be available for grazing after the solar farm is constructed.
The planning report says the 13 megawatt capacity farm “fully meets the aims of international, UK and Welsh Governments with regard to climate change, renewable energy and energy security”.
Cllr Wynne David, Vice Chairman of the Planning Committee and councillor for St Cattwg, the ward where the development will take place, said: “It will provide a generation of green electricity with minimal impact on the environment.”
He added the development would not be an eyesore.
Solar Securities Group LTD plan to have the site operational by the autumn and will provide a community benefit package of around £41,000 to Gelligaer Community Council.
Rupert Warwick, Project Manager at Solar Securities, said: “It’s low carbon and it’s renewable which is part of the UK Government and European Union’s energy programmes.
“One reason we chose this area is because it can be reasonably well screened so the visual impact is kept to a minimum and we haven’t had any objections due to our diligence when choosing the site.”
The company will run the site for 20 years, partly subsidised with UK Government money, but could not confirm whether the construction will provide local jobs. The site will have an operational life of 35 years.
Mr Warwick added: “When operational there will be a small amount of jobs created for security and maintenance which we hope to create locally.”
The planning committee refused a separate application for three wind turbines at Pen Bryn Oer, Merthyr Road, Rhymney.
The committee said the turbines would not conserve or enhance the natural features of the area and would impact tourism at Parc Bryn Bach.
Developers REG Windpower said a survey showed 58% of residents in Twyn Carno and Moriah wards were in favour of the plans and up to 20 supporters attended the meeting.
Nick Webb, a spokesman for REG Windpower said: “We are disappointed the council did not take the views of the residents into account.
“The supporters believe we need to produce sustainable green energy, we though that the reason for refusal was weak and are disappointed there was not more scope for discussion with officers.”
A £30,000-a-year community benefit package was proposed alongside the plans.
Supporters included representatives of Rhymney RFC, who REG Windpower sponsor this season, as well as environmental groups and residents.