The town of Penig lies directly on the Zwickauer Mulde, some 20 km northeast of Chemnitz. Situated at an old river crossing, an important old trade route, the old Salt Road, from Halle via Leipzig, Borna, Penig, Chemnitz, Reitzenhain in the direction of Bohemia crossed here passing by the river. Thanks to its favourable position, already in the Middle Ages the town had gained regional importance as a market town. Early on, trade, handicrafts and commerce developed here.
The solar park lies close to Penig in Saxony. On the 31st of December, 2007, it was connected to the grid.