PETERBORUGH, N.H. — A small town in New Hampshire is undertaking a big solar panel project.

The Hillsborough County town of Peterborough will break ground Monday on what will be the largest solar power system in the state.

The 944-kilowatt installation will be built on nearly five acres of former wastewater lagoons at the site of the town’s wastewater treatment plant.

The town received a $1.2 million grant from the New Hampshire Public Utilities Commission and will further offset the cost through a 20-year power purchase agreement with a subsidiary of Borrego Solar Systems – developer of the project.

The grant and power purchase agreement are enabling the town to install the system with at no up-front cost.

Electricity from the installation will power the wastewater treatment plant and other town facilities.

Peterborough officials say they expect to save up to $25,000 a year in energy costs.

“By collaborating with Borrego Solar and seeking support from the state, we as a community were able to afford to go solar, preparing us for a more financially sustainable energy future,” said Rodney Bartlett, Peterborough’s director of public works.