A $7 million solar-electric project to be built in Oakland has received all its permits and construction is set for later this year, according to Encore Renewable Energy of Burlington, Vermont.

The 5-megawatt array is designed to generate enough power to meet the annual demand of 10,000 Maine homes, according to the developer. It will be located on Alpine Street.

Encore was selected by Competitive Energy Services of Portland to provide renewable energy credits to a group of customers that include businesses, municipalities and academic institutions.

The company said Monday that the venture is an example of how recent state policies that support clean energy can help the state recover from the COVID-19 pandemic.

“Maine’s solar market has been advancing steadily under Gov. Mills’ leadership,” said Chad Farrell, Encore’s founder and CEO. “This project and others that follow will support Maine’s growing clean energy economy.”

Although some customer-facing businesses, such as insulators and heat pump installers, have been largely idled by the pandemic, large-scale solar projects are moving forward.

Encore pointed to recent data from the Solar Energy Industries Association’s Solar Market Insights Report, which projected that Maine would develop 873 megawatts of new solar capacity over the next five years, moving it from 42nd place to 25th nationally.

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