Research firm New Energy Finance projects a global oversupply of nearly 4 gigawatts of solar modules in 2009, according to USAToday -- enough to supply electricity to 2.6 million homes.

Lower demand worldwide is reducing prices for consumers.

"Retail, two months ago was at$6.50 a watt," said Daniel Bowes, owner of West Virginia Solar in Philippi. "It has dropped down to less than $5 a watt."

Figuring in the cost of installation, that can mean $1,000 off the price of a small, $13,000 residential system, Bowes said.

West Virginia Solar sells solar, wind and microhydroelectric systems and provides installation and service in West Virginia and Maryland, according to the company's Web site. Applications include power generation for residential or commercial buildings as well as water pumping and parking lot, sign and emergency lighting.

Prices on solar panels are so good right now that Bowes said he would like to add a significant amount to his inventory.

Adding to the incentive to buy now is a federal tax incentive that, in the past, offered a 30 percent tax credit for alternative wind and solar installations. The tax credit was capped at $2,000 for homeowners.

That incentive changed Jan. 1. This year, Bowes said, the cap has been removed.

"It's a huge help for anybody desiring to move toward an alternative source," he said.

Bowes's solar business was flat last year with the year before, but the down economy has, against all intuition, increased calls to his shop.

"People are saying, 'If we're going to go down the tubes, I want to have power,'" he said. "It's changed motivation from wanting to be green to just wanting to have power."

In Bowes's mind, an alternative energy system such as a solar installation carries an up-front cost that is a worthwhile investment.

"You can go out and buy a new car, and it will cost you from the day that you buy it," he said. "Or you can spend close to the same amount of money and eliminate your power bill for the rest of your life."

Bowes said he would like to see incentives at the state level to help low-income households make the investment.

Short of that, he has partnered with a leasing company to help make financing installations affordable.

"If you have good credit, you can actually lease all of the equipment," he said. "If you have a business, it's a tax write-off. At the end of the lease, you pay the leasing company one more dollar and the equipment is yours. That's a great deal."

Nationwide, photovoltaic installations -- which is different from concentrated solar generation stations and solar hot water systems -- topped 750 megawatts in 2007, according to the Solar Energy Industries Association. That is about equal to the capacity of a moderate-sized coal-fired power station.

With about 150MW installed in 2007, installed capacity is increasing more rapidly each year.

Given current favorable pricing and the strengthened federal tax credit, 2009 may turn out to be the best year yet for solar.

"If you can afford it, this is a great time to do it," Bowes said.