Recurrent also plans to expand into Europe.

The acquisition by Sharp is scheduled to be completed by the end of 2010, after approval by the authorities has been obtained, and will make the US company a wholly-owned subsidiary.

The deal could reportedly be worth up to US$305 million. In a statement, Sharp said the deal was made in anticipation of "greatly" increasing demand for solar power in North America as the number of related projects rises.

Recurrent, an independent power producer based in the USA, develops and markets solar power plants by collaborating with power companies.