Wagga MP Joe McGirr says the city could benefit from inclusion in a new renewable energy zone, which would encourage the construction of more large-scale projects.
NSW Environment Minister Matt Kean this week granted $40 million to support the state's first renewable energy zone in the Central West, which received more than 100 expressions of interest totalling $4 billion in new investment.
South West NSW will receive its own renewable energy zone in the future, making it easier and faster for new projects to go ahead, but the exact location has not been revealed.
"I think Wagga could benefit, for sure," Dr McGirr said.
"This strategy the government has of moving electricity west of the divide is exactly where we need to go.
"We are a land of sun and space and it opens up enormous potential to generate electricity that is cheap and renewable."
There are multiple solar farms proposed or being built around Wagga and Junee.
Committee 4 Wagga chief executive Alan Johnston said new investment around the city should be encouraged.
Mr Johnston said solar farms brought new construction jobs in the early stages "but very little in the way of ongoing jobs".
"Having reliable baseline power and competitive pricing is the outcome we'd be after," he said.
New solar farms continue to face resistance in the Riverina, with Greater Hume Shire Council last week rejecting a proposal for a 400-megawatt solar farm at Culcairn.
Sharon Feuerherdt, who owns farmland next to the proposed site, said she was concerned that a Renewable Energy Zone would take up productive agricultural land.
"I am totally opposed to massive solar development," Mrs Feuerherdt said
"Small ones about 100 hectares would probably suit this area where there is appropriate infrastructure but not massive ones covering huge amounts of land."
Dr McGirr said he acknowledged there was past and ongoing concern about solar projects from farmers "about the impact on their land".
"There is also concern about the loss of agricultural land, although it is a market and there will be some farmers who will benefit from allowing their land to be used for this," he said.
"The important thing is to make sure the impact on their neighbours is managed."
Mr Johnston said it was a "fair debate to have".
"Obviously the best of both worlds would be to build solar farms on somewhat arid and less fertile land," he said.