Energy company Nest is to build one of Tasmania's biggest solar power plants at Kings Meadows.
The $2 million investment will generate 1-megawatt of electricity, enough to power around 200 homes.
Nest director Mark Barnett said the power generated will initially benefit businesses based at Launceston's old wool store site, the site of the rooftop development.
"We're able to sell it to them at a rate that is cheaper than what they're currently paying, so they're happy customers. We've got to get our return on investment because it's a big investment as you know, so that works too," Mr Barnett said.
Treasurer Peter Gutwein believes the project is about much more than power generation.
"It will create around 14 jobs during design and construction and... also encourage other businesses to be innovative and creative.
"This is just the latest major project in Launceston to point towards increasing confidence and economic growth and follows the commencement of site works at CH Smith, the announcement of hotel developments in the city and the landmark UTas development at Inveresk," Mr Gutwein said.