Thirteen new renewable installations set to support the state's agriculture sector have been funded as part of a new statewide solar project.

Tasmanian Irrigation has received $2.5 million for their Energy on Farms Solar Project initiative that will be used to build solar arrays at existing irrigation water pump stations.

The renewable project will offset electricity usage by farmers, and will generate enough surplus power to be fed back into the state's grid.

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Tasmanian Irrigation chief executive Andrew Kneebone said farmers could save up to $5 per megalitre, and would make irrigation water more efficient and cost-effective.

Mr Kneebone said the construction of the solar arrays would commence in December 2022, with an expected completion of December 2023.

The solar panels will be built on existing pump stations at Liffey and Cottons Bridge in the state's North, Smithon and South Riana in the North-West, and Shannon River, Bothwell, Hollow Tree, Stoneycroft, Milford and Sprent in the South.

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A spokesperson for Tasmanian Irrigation said tenders would be released shortly, and GHD construction were in consultation with landowners over the developments.

Part of the funding will also be used to refurbish the Meander Mini Hydro Power Station, which was also the recipient of a $2 million upgrade last year.

The funding is the latest in a $5.5 million spend on three Energy on Farms Projects to improve energy costs.

The demand for cheaper and more reliable water from farmers has seen the state invest heavily in irrigation schemes over the past decade, with 18 operational schemes and a further six projects in the pipeline.

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This includes the 4750ML Don Irrigation Scheme, which is currently being built as the first project in Tranche Three of the statewide irrigation rollout.

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