FAYETTEVILLE, Ark. (KNWA/KFTA) — The University of Arkansas announced it is implementing a solar services agreement that will reportedly save the school millions of dollars in electricity costs and cut greenhouse gas emissions by 8.8%.

According to a press release, the agreement, which is expected to save more than $200,000 in its first year, will create sustainable energy from multiple solar panels at a new 25-acre facility located off campus.

Also, the decrease in greenhouse gas emissions that the effort will support is reportedly the equivalent of taking more than 1,000 gasoline-powered passenger vehicles off the road for one year.

Entegrity Energy Partners of Little Rock will facilitate the project. According to the university, Entegrity will provide all capital costs, design, permitting, installation, utility interconnection, operations, and maintenance of the solar array and provide energy as a service to the U of A campus.

U of A says the solar array will be developed offsite on approximately 25 acres within its electrical grid. The campus will purchase the entire energy output of the array at a specified rate over the 25-year contract term.

The facility reportedly has a minimum guaranteed production of 8,688,880 kWh in the first year which is approximately 6.3% of the campus electrical energy requirement.

“The U of A is leading by example,” said Eric Boles, director of the Office for Sustainability. “Simply put, this project saves money, reduces risk, and minimizes environmental impact. We are excited to tell this story and inspire others to look beyond business as usual.”