Residents of a southern Queensland town say they are "extremely disappointed" in a multi-million-dollar solar farm which has been given the green light for construction.

Terrain Solar submitted the application to develop a 154 hectare site at Freestone Valley near Warwick, but the University of Queensland will take ownership of the project when construction begins later this year.

"We're known as the rose city, do we really want to be known as the industrial city?” resident Meryl Strand said.

"I call it environmental vandalism, why would you put that on good agricultural land?"