A new report from the Lawrence Berkeley National Laboratory says that installing solar panels is getting cheaper due to renewable incentives and increased interest – which is fantastic news for both the solar industry and our environment. In 2008 dollars, the actual cost of installing these systems is around $10.80 per watt, which sounds like a lot until you figure in the incentives available for residential installations, when the average cost goes down to $2.80 per watt. Not bad at all. From CNET News:

The report attributed rising fuel prices since 1998 and government incentives for alternative energy to the solar market boom. There has been a significant increase in photovoltaic installations in the U.S. since 2007. Of the 566 megawatts of solar added to the U.S. grid since 1998, an estimated 293 megawatts of photovoltaic were added in 2008 alone. That recent uptick was attributed in part to “more lucrative” federal investment tax credits adopted for commercial photovoltaic systems in 2006.

The more residential and commercial installations that get put in place, the cheaper and cheaper they will get. Here is to hoping that we see this decline continue until it is affordable for everyone.