Solar power is growing exponentially as a key source to meet the world's energy needs, the chief executive of a panel maker told CNBC on Friday.

Steve O'Neil, CEO at Norway-headquartered firm REC, said that was likely due to the falling cost of solar energy as a result of technological developments.

"Solar is growing exponentially is what I don't think people realize," O'Neil told CNBC at the sidelines of the Singapore Summit. "Every two years, the installation rates are doubling and so it's happening around the world now very quickly."

That was despite the fact, he said, that currently 2 percent at most of the world's electricity is supplied by converting sunlight into energy. Therefore, there's likely greater room for solar energy penetration in the market.

Reports earlier this year said the total amount of solar power added globally soared by about 50 percent in 2016 due to the United States and China. Worldwide, the solar power capacity is at 305 gigawatts, up from about 50 gigawatts in 2010.

Part of the increased adoption of solar is likely due to a reduction in the cost of converting sunlight into usable energy. Prices are expected to fall further due to scaling and cost improvement, according to O'Neil.

"There's no doubt that costs are going to continue to come down," he said. "Now, around the world, solar energy costs about 8 cents a kilowatt hour. That's down 70 percent since 2010, and those costs are going to continue to come down as we develop the technology."

Moreover, he said, improved storage makes it possible to use solar energy even when the sky is cloudy or overcast.