Work has started on a $54 million solar power facility that will provide electricity to as many as 4,000 homes on Kauai.

The 57,624-panel project, by REC Solar and the Kauai Island Utility Cooperative, will generate 12 megawatts, supplying 20 percent of the Garden Island’s electricity during daylight hours, or up to 5 percent of Kauai’s annual electricity needs.

Board members of the Hawaiian Homes Commission voted in February to approve terms for the 25-year lease for the land under the project. Terms provide for ownership of the solar array to transfer to DHHL after 25 years.

Construction is expected to be completed next year.