A firm specialiseing in solar power has started the search for a new production plant.

The Intersolar Group, which has its head office on the Oxford Science Park, is spending £1.2m on a suitable facility that will be used to dramatically step up its production of solar cells used in homes and industry.

The company already has a factory in Wales but the expansion would mean it could make considerable cost savings.

The Government has pledged funding of £420,000 -- 35 per cent -- of the project as it strengthens its commitment to renewable energy.

Chairman Philip Wolfe said: "We are looking at different locations, but the head office will remain in Oxford.

"Rapid growth in the solar power industry is expected in the next ten years because it is sustainable and does not involve any machinery."

Mr Wolfe believes the ten megawatt plant would be able to reduce the cost of solar cells to around 70p per watt, giving it a strong position next to traditional energy sources.

The new plant will incorporate the development of thin film photovolatic cells, which is a relatively new process most adaptable to mass production. Intersolar is the UK's only manufacturer of photovolatic cells.

Intersolar has been recruited by national housebuilder Persimmon Homes to install solar electric roof slates in a major new housing development in Bedford with plans to repeat this with its new homes across the country.