Innovation in the solar industry could help reduce the price of the renewable source by as much as half by 2030.
A new report identified more than 30 technological innovations that had the potential to cut capital investment costs by 20%-30%.
That would be through changes in the design of hardware, software and other processes, it stated.
In addition, it found as innovation boosted the efficiency of solar components, “significant economies of scale would also be unlocked in supporting infrastructure such as cabling and fixing mounting systems”.
The report adds when taken alongside projected savings in the supply chain and a reduction in financing costs, the levelised cost of producing solar could come down from the current range of between €75 (£57.9) – €90 (£69.5) per MWh to just over €40 (£30.9) per MWh by 2030.
Antoni Martinez, Chief Technology Officer for Renewables at KIC InnoEnergy which published the report said: “Innovation is at the heart of reducing costs and making sustainable energy sources, like solar, even more competitive.
“Our report shows not only how important innovations in sustainable energy are and will continue to be in providing the affordable electricity we all need but also the important role that solar energy as a technology will continue to play in making this happen. Solar is set to become one of the cheapest sources of energy available so we must do everything we can to ensure that support for this technology remains unwavering across Europe.”
Last year the UK Government confirmed reduced financial support for solar.