Day4 Energy has found a way to cut the cost of solar power by 25 percent, using a new electrode that, together with a redesigned solar-cell structure, allows solar panels to absorb more light and operate at a higher voltage.

The company estimates the cost per watt of solar power would be about $3, compared with $4 for conventional solar cells. That will translate into electricity prices of about 20 cents per kilowatt-hour in sunny areas, down from about 25 cents per kilowatt-hour.