Linda McLean, who owns the Vacy Village Motel next door to the pub, said Rio Indygen's intention to create a 50 hectare solar farm on cattle grazing land alongside Horns Crossing Road would destroy the town's rural focus and have a negative affect on the tourism economy.

She said tourists travel to Vacy to soak up the rural ambience and relax. If the plan goes ahead the motel will overlook the site and so will the Farmer's Hotel, the oval, Vacy Public School and many residential homes.

She said homes in the nearby hills around the town's main street would also be affected.

"Vacy is a lovely rural community with a focus on cattle farming and horses. Vacy is where the Allyn and Paterson rivers join so it is quite a unique area. This is a tourist destination, this is the landing spot for people who are going up to Eaglereach - a world renowned resort, and that tourism does feed this area," she said.

"To have that visual impact less than a kilometre from the downtown part of the village will impact so many people and their opinion of this valley and Vacy itself.

"I think there is a better place for this project."

Rio Indygen is yet to submit a development application to Dungog council, but has confirmed it will seek approval for the project.

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It has investigated the plan's environmental impacts but the results are yet to be made public. The company has confirmed on its website that it will offer community consultation. That is yet to take place.

Project manager Andy Barrow told the Mercury the company had considered sites in Martins Creek before it secured an option to lease agreement with the Vacy landowner.

Concerned residents are forming a Vacy Village Action Group to challenge the proposal.

"The space that they are proposing is going to impact on a whole community. There are other properties closer to the substation at Martins Creek that would have been more appropriate and would not have impacted an entire community," Ms McLean said.

"There is a lovely street called Corys Creek Road which probably has the best views of the entire region and their views will be totally trashed. Most of them aren't even aware that will be the case. So many have no awareness about this."