Solar power components will cost 50 percent less than they did at the end of 2008, says alternative energy research firm New Energy Finance.

That 50 percent cost reduction is a pre-subsidy figure, meaning that solar installations could be substantially cheaper than they were a year ago once state and federal incentives are factored in. New Energy Finance credits the cost reduction to less-expensive components and more readily available credit.

Michael Liebreich, New Energy Finance CEO, said that "as capital markets loosen up and equipment prices continue their decline, we will see the levelized costs decline, finishing the year 10 percent below the end of last year across the board."

The report cited thin-film solar as the least-expensive solar technology, with project costs as low as $3 per watt. Thin-film is 25 percent cheaper than crystalline silicon technology, the report added.

It’s not just solar prices that are down in 2009, New Energy Finance says: wind turbine costs are between 18 and 20 percent below their early-2008 levels. Whether wind or solar power, green energy is becoming more economically viable in 2009.