Energy Minister Stephen Robertson has welcomed another key milestone in the Bligh Government's $4 million plan to help power Hervey Bay with clean energy.

Mr Robertson said Queensland Health had now completed contractual arrangements with ABB Australia to install a $1.3 million 266 kilowatt solar panel system at the Hervey Bay Hospital.

"Depending on the weather, installation will begin within a few weeks on a solar panel system that will generate 385 megawatt hours of energy each year, saving the hospital around $20000 per year on electricity costs," he said.

"It will also help to reduce the hospital's carbon emissions by 400 tonnes a year.

"An interactive web-kiosk and large screen television showing the energy being produced by the system daily, monthly and annually will also be installed in the hospital's foyer as an education tool for visitors.

According to Mr Robertson this project and the $2.7 million Fraser Coast Community Solar Farm are part of the Bligh Government's commitment to renewable energy projects.

"The finalisation of the contractual arrangements for the Hervey Bay Hospital solar project is an important step towards creating a clean energy future for all Queenslanders."