The plant, set up at a cost of Rs 37.58 crore in 37 acres, will produce 8.06 million units of power annually.
The Centre has extended a capital subsidy of Rs 7.50 crore for this plant.
AP, which commissioned the country's first solar park with a capacity of 250 MW in Anantapuramu district this year, currently has an overall installed capacity of 1000 MW of solar energy.
"A 1000 MW ultra mega solar park with 1000 MW capacity will be commissioned in Kurnool district by March 2017. With this our solar energy capacity will go up to 2000 MW," Principal Secretary (Energy and Infrastructure) Ajay Jain said.