KAYENTA, Ariz. — The Navajo Nation is expanding a solar energy farm in Kayenta (kuh-YHEN’-tuh).

The second phase will produce the same amount of energy as the first — about 27 megawatts, or enough to power 18,000 homes. It’s expected to start operating next year.

The Navajo Tribal Utility Authority is financing the $50 million project through loans.

Tribal officials say they’ll sell the renewable energy credits to the Phoenix-based Salt River Project. SRP also will get energy equal to the amount generated at Kayenta.

The setup is similar for the first phase in Kayenta that went online last year.

The two utilities signed an agreement Friday to work together on future renewable energy projects, with a goal of 500 megawatts over the next five to 10 years.