First Solar has received approval from the Federal Department of Interior to build its 550MW Desert Sunlight project in California, US.

First Solar will employ thin-film photovoltaic solar panels for the project, being built on 4,100 acres of federal land.

First Solar is seeking a buyer to purchase the project for which a $1.88bn federal loan guarantee is still pending.

Construction will begin this month at the project, which is set to generate enough energy to power 165,000 homes through Southern California Edison, a subsidiary of Edison International, reports the Wall Street Journal.