One of the largest makers of semiconductor chip manufacturing equipment, Applied Materials, said Tuesday that it plans to aggressively pursue sales of equipment to make solar cells.

The company will provide manufacturing tools that will help lower the cost of converting the sun's energy into electricity for consumers, said Mike Splinter, chief executive of the Santa Clara company. High costs are a barrier to more widespread adoption of solar energy.

'We plan to change the cost equation for solar power through adaptation of our existing technology and new innovation in order to help make solar a more meaningful contributor to the global energy supply,' he said in a statement.

The prelude to Splinter's announcement came earlier this summer when Applied Materials agreed in May to pay $464 million to buy Applied Films, a maker of machines that can be used to make displays and solar cells.

Market researchers estimate that the overall solar equipment market will grow from $1 billion in 2006 to $3 billion in 2010. That doesn't count revenue for servicing equipment.

Demand for solar is going through the roof as consumers look for alternatives to rising energy costs and take advantage of government subsidies that encourage solar use. Solar markets in Japan, Germany and California are taking off thanks to these subsidies. Overall solar revenues are expected to grow from $5.2 billion in 2005 to $13.9 billion in 2010, according to analyst firm ThinkEquity.

Splinter said that Applied is showcasing several pieces of equipment this week at a solar energy trade show in Germany. Lowering the cost of solar installations could have a big impact on demand, he said.

According to a Harris Interactive survey commissioned by Applied Materials, about 87 percent of homeowners who do not use solar power cited barriers such as cost as the most common reason they aren't adopting solar power.