The federal government granted approval on Monday for a 500-megawatt solar-thermal plant on federal land in Nevada, Dow Jones Newswires reports.

Solar Trust of America, a merging of Ferrostaal AG and Solar Millennium of Germany, is developing the Amargosa Farm Road solar project. The price tag with the project is $3 billion.

"Our commitment to the development of clean, renewable energy is creating new jobs that will aid in our economic recovery, protect our environment and transform the way our nation gets our energy," according to a statement from Interior Department secretary Ken Salazar.

The project is eligible to capitalize on last year's stimulus package passed by Congress, which is a $1 billion federal investment tax credit. That credit is roughly 30 percent of what a project costs.

Thus far this year, the Interior Department has signed off on eight large solar power projects on federal land in California and Nevada. The eight plants are expected to generate 3,500 megawatts, power 6,000 construction jobs, and create 6,000 construction jobs and 700 permanent jobs at the plants.