Sunedison Inc (NYSE:SUNE) has revealed a 20-year purchase contract that the firm recently struck with Southern California Edison.

The deal between the two companies will allow them to enhance reliability for the grid by 2.7 megawatts of direct current that will be solar generated. The deal could be additionally beneficial to the environment by helping avoid pollution.

The contract will allow South California Edison to meet its goal of being more efficient and environmentally friendly by cutting down on pollution. The firm has been contemplating clean energy solutions that will be a better alternative to putting up a gas power plant in Orange County. South California’s power supply has been somewhat lacking since ocean-cooled power plants nearby including the San Onofre nuclear power station were shut down.

Edison has therefore been faced with the challenge of coming up with alternatives that will provide good supply while at the same time offering power that is less taxing to the environment. Sam Youneszadeh, regional general manager for SunEdison’s Western US solar business, stated that the firm is aware that air quality has grown into a major concern for the area’s residents. He also pointed out that the situation is equally dire for electricity reliability in the region which is still growing economically.

Youneszadeh also noted that solar power is a great way to boost the grid’s reliability without releasing greenhouse gases into the environment. The project will help avoid up to 50 million pounds of carbon dioxide which is equivalent to emissions from 5,000 vehicles traveling on the road for 20 years. The arrangement is seen to be cost effective and easily scaled up. The deal will also allow benefits without involving any upfront costs. SunEdison plans to set up the system on parking canopies and rooftops.

The solar systems from the project will provide enough electricity to power up to 640 homes in California for a whole year. The contract between the two firms is currently awaiting approval from the state’s Public Utility Commission.