Prices for rooftop solar systems, including installation, already have fallen 8% to 10% since October and are expected to drop another 15% to 20% this year.

Fueling the trend are an oversupply of worldwide manufacturing capacity and lower demand, especially in Spain and Germany, which have been growth engines for the industry.

For U.S. homeowners, effective prices are likely to plunge by more than 50% after figuring in a bigger federal tax credit that took effect Jan. 1.

“The era of extremely expensive (solar) modules is over,” says analyst Nathaniel Bullard of research firm New Energy Finance.

Since 2004, solar prices have been propped up by a shortage of capacity to make both silicon — the raw material for solar-power systems — and finished panels. Meantime, the Spanish and German governments have paid system owners hefty subsidies to generate solar power, turbocharging sales in those countries.

Manufacturers responded by building a wave of factories. Then Spain and Germany slashed this year’s incentives. In the U.S., the biggest solar investors were banks such as Morgan Stanley that can no longer benefit from tax credits because of insufficient profits.

New Energy projects an oversupply of nearly 4 gigawatts of solar modules in 2009, or enough electricity to supply 2.6 million homes.

The glut is already dragging down prices. Barry Cinammon, CEO of Akeena Solar, one of the nation’s largest installers, says wholesale prices have fallen about 15% since October. Since installation accounts for about half the cost of a system, total costs are down about 8%. SunPower, one of the largest solar makers, expects its retail prices for installed systems to dip as much as 20% this year.

“Now, all of a sudden, we have module manufacturers calling us,” says Peter Rive, chief operating officer of Solar City, the No. 1 installer.

Consumers can reap even bigger gains if they can buy in a recession.

Until this year, homeowners who bought solar systems were eligible for a tax credit that shaved system prices 30%, but the credit was capped at $2,000. Last fall, Congress renewed the 30% credit and removed the cap, lopping thousands more dollars off solar price tags.

selfish plug for the best named company in USA……..

Time’s up!

Over consumption, over spending, over producing, globalization, out sourcing, in a word everything to make our lives more complicated and expensive! How expensive? about eight trillion dollars of vaporized wealth so far. Our money has become weak in recent years, adjustable rate mortgage foreclosures, millions of job losses, skyrocketing energy costs are all effects of poor monetary policy.  The simple truth gets foggy when presented by economists, government, corporations, politicians, bankers, and of course the US Federal Reserve. All of these entities have created a monster of sorts where no one is responsible or to blame but where only the very few survive and make out. It’s the working class stiff that gets the stiff. It is truly remarkable how in just a few weeks $140/barrel oil sobers up a drunken public who screamed GREEN GREEN  and just a few weeks after oil returns to $40/barrel everyone drinks again and the only thing green is the bottle they’re tipping. People seem to forget about the pounding oil related headache that was experienced just a few months ago. What did you do with this reprieve? How long do you think this $40.barrel oil will last? What will happen when it shoots back to $80 or $100/barrel? The bigger question is what would happen if you become one of the unemployed millions and had limited income?

Here are some small steps that you can take to protect yourself and your family. Spend a few dollars and insulate your home. Stock up on non perishable foods, a water purification device, a hand crank radio and flashlight, $3000 to $5000 cash on hand, a few silver coins and maybe some gold ones if you can afford them, and a reliable source of renewable electric power. Solar or wind power are renewable and the power can normally be sold back to your electric service provider if you over produce and that’s money back in your pocket. Toboa Energy Resources can help you with selecting solar or wind energy equipment that fits your needs and budget. There are many things that can be done with the home to make it better as well. Solar powered attic vent fans, solar outdoor lights, high efficiency appliances, etc…Whatever your plans may be it always pays to be prepared. Toboa Energy Resources is here to help visit us at www.toboaenergy.com

Jan. 12 (Bloomberg) — President-elect Barack Obama is making “significant” changes to his economic stimulus program, such as boosting energy tax incentives, after members of his own party called elements of the plan inadequate.

“I think they’re moving very effectively to respond to the issues that we raised the other day,” Senator John Kerry, a Massachusetts Democrat, said yesterday after lawmakers met with Obama economic advisers Larry Summers and Jason Furman.

Senator Maria Cantwell, a Washington Democrat, said Summers showed a willingness to double tax credits in the bill for renewable energy to more than $20 billion.

Obama’s plan for a two-year stimulus program of about $775 billion ran into turbulence in the chamber last week when lawmakers criticized elements including a job-creation tax incentive and the share dedicated to tax cuts. Some said Obama’s plan wouldn’t do enough to reduce the nation’s dependence on foreign oil while others called for more infrastructure spending.

“They’ve made some significant changes,” said Senator Charles Schumer, a New York Democrat; Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, said, “They are clearly listening to our colleagues.”

Schumer said Obama plans to produce an outline of a stimulus package rather than a detailed measure, leaving it to lawmakers to “fill in the blanks.”

lots of news out there on APWR with GE supplying gear boxes till mid 2010 and then building a joint venture majority owned by GE  to supply Asia with gear boxes.   This is  huge validation of the APWR biz model but at the same time, Roth Capital REDUCES price target for APWR from $7 to $6 after being at the Shenyang ribbon cutting ceremony with APWR and GE making noise.   What has Roth capital seen that makes them cut their price target???   Stay tuned my windy friends, it aint over till the fat lady sings from Shenyang!!!!!

A-Power Energy Generation Systems “hold,” target price reduced
11:58a.m. – Roth Capital

NEW YORK, January 12 (newratings.com) – Analysts at Roth Capital reiterate their “hold” rating on A-Power Energy Generation Systems Ltd (APWR). The target price has been reduced from $7 to $6.