By Matt Grossman

Duke Energy Corp.'s 200-megawatt solar-energy project in Texas's Nolan County has begun commercial operations, the energy company said Tuesday.

The project is the largest solar project under Duke Energy Renewables, Duke Energy's renewable-power subsidiary. Duke bought the project from 8minute Solar Energy, which developed it.

The Holstein project, as the solar facility is known, comprises more than 709,000 solar panels located on about 1,300 acres in Wingate, Texas. It will generate enough energy to power 40,000 homes, Duke said.

Some energy from the project will be sold to J. Aron & Co. LLC., a Goldman Sachs Group Inc. subsidiary, under a 12-year hedge agreement.

Write to Matt Grossman at matt.grossman@wsj.com