Ambitious targets for lowering the cost of solar cells are achievable as today's high cost of silicon comes down, SunPower co-founder and Chief Technology Officer Richard Swanson (pictured) said Tuesday.

Today, solar cells remain relatively high priced – at $4 a watt of electricity. As a result, solar power can cost 2 to 5 times greater than power generated from oil.

By 2013, the cost of making a solar cell could fall to $1 to $1.20 a watt, Swanson said at the Hot Chips conference at Stanford University.

He said it is difficult to say what retail prices would result. But estimates show prices of about $1.44 are possible.

"At that price, we see unlimited growth potential for our industry," he added.

Swanson said he sees the shortage of silicon needed to make photovoltaic cells easing soon. With greater availability, projections show photovoltaic cells could generate more electricity in the country in 2040 than natural gas, he said during a keynote address.

He added that it takes about two years for a solar cell to generate more energy than the energy required to produce it.

By Mark Boslet, Editor at Large.