A solar garden proposal has been transferred from three South Shore municipalities to a private developer.

Councils for Lunenburg, Shelburne and Argyle have passed the Community Solar Program application to AI Renewable Fund, with PowerBank as the developer.

The Oakhill project is planned at the former Bowater sawmill site, it’s expected to generate seven megawatts of energy, enough to power 1,200 homes.

In a release, Lunenburg mayor Elspeth McLean-Wile says the private proponent can better leverage federal investment tax credits.

Argyle warden Nicole Albright says they learned through the process that private industry could provide a more cost-effective method of delivery.

As part of the deal, the municipalities will be reimbursed for their pre-development costs within 12 months of a contract award.

If the Fund wins a contract through the province, residents would get a two-cent per kilowatt bill credit.

The fund and PowerBank have already been awarded three solar projects, including developments in New Germany and Lunenburg.