Carmel-based Telamon Corp. says it has signed a deal with the city to develop solar power arrays at two locations. The company estimates the project will save Carmel nearly $4.5 million over 25 years.

The arrays will be located at or near city water plants. The 1.08 MW system could produce more than 1.5 million kilowatt hours of renewable energy. Telamon says the system will offset more than 1,000 metric tons of carbon dioxide, which is the equivalent of powering 146 average-sized American homes for one year.

In addition to the savings, Carmel Mayor Jim Brainard says the project "will help keep our air clean and reduce the cost and suffering of those with lung diseases."

Construction on the solar arrays is expected to begin in August and wrap up in December.