The leading solar car competing in the World Solar Challenge has burst into flames, forcing the team out of the race for the first time in 20 years.

Key points: The Vattenfall solar car caught alight just south of Port Augusta

The Vattenfall solar car caught alight just south of Port Augusta The solar car was this morning leading the World Solar Challenge

The solar car was this morning leading the World Solar Challenge The team has shared its devastation on social media but said the driver was safe

The solar car — from the Vattenfall Solar Team — caught alight on the Stuart Highway, just south of Port Augusta this morning, just 263 kilometres from the Adelaide finish line.

The Dutch team posted on social media moments earlier that it had only 360 kilometres to go to finish the race, before confirming the "accident" just before 10:00am.

"Unfortunately we have had an accident. It looks like everybody is okay. We will keep you updated as soon as we know more," the team posted on Twitter.

The Vattenfall team stands together as its solar car burns in front of them. ( Facebook: Vattenfall Solar Team )

The team said no-one was hurt in the incident, but confirmed that its race was over.

"With a very heavy heart we have to tell you that our World Solar Challenge is over," it posted.

"A first 'did not finish' for Nuna in 20 years. Driver Tim is okay and got our [sic] of the vehicle in time."

Hours after the fire, Belgian team Agoria claimed its first victory in the event when its car crossed the finish line just after 1:30pm.

It was the team's first victory in six attempts, after its solar car avoided the mishaps that plagued other leaders throughout the race.

Earlier, team Agoria's Yante Van Ham said her team was shocked to see the Vattenfall car alight, but it allowed them to overtake the leaders.

"We were driving past and everyone in our car convoy for our team was very shocked, nobody was hurt luckily because it was a big fire," she said.

The fire quickly spread into a surrounding grass paddock which firefighters are now working to extinguish.

Emie Klein Holkenborg from the Vattenfall team said she felt "really devastated" but was glad the driver was safe.

Emie Klein Holkenborg from the Vattenfall team holds a piece of the vehicle after the fire. ( ABC News: Claire Campbell )

"I can't believe that our solar car, which we worked on for 14 months, just burned down," she said.

"We parked the car … we got the driver out … after that the whole car burned down.

"We were so close to being the winner of the World Solar Challenge … unfortunately this happened so we will not get to the finish line."

The team also shared its devastation on social media, and said it was trying to work out what had happened to cause the fire.

"The team is devastated … currently managing the fires and figuring out what happened," it said.

Members of the Vattenfall team hug each other following the fire which has ruled them out of the race. ( Twitter: VattenfallTeam )

Another team competing in the race, Solar Team Twente, also posted on social media following the incident, saying it was deeply shocked.

"We are glad to hear that the driver got out of the car and is safe. If we can do anything please let us know," the team said.

Solar Team Twente's car was one of three solar cars forced off the road yesterday due to strong winds, with one driver taken to hospital as a precaution.

The three vehicles impacted by the conditions were from Japan, Germany and the Netherlands.

The remains of the solar car after it burst into flames this morning. ( ABC News: Claire Campbell )

There are 44 teams, made up of mostly university students, from more than 30 countries competing in this year's challenge.

The teams set off from Darwin on Sunday on the 3,000 kilometre trek to Adelaide.

The race has been held biennially since 1987, promoting sustainability and solar technology.