Here's some legislation that could radically change the demand for solar electricity installations:
The Securing America's Energy Independence Act (S. 590, H.R. 550) would extend the federal solar tax credits through 2016 (instead of 2008).
More importantly, it would lift the cap from the current $2000-or-30% tax credit to a straight $3 per Watt for residential installations. That's huge!
The CA state rebate is currently ~$2.50 per AC Watt.
With installation quotes averaging around $9.50 per production Watt, these together could pay for more than half the homeowner cost.
(There's also an AMT exemption.)
The SEIA (Solar Energy Industries Association) has a lot to gain, so they are pushing an Action Alert:
http://capwiz.com/re-action/issues/aler ... id=9328091
They have a one-page summary:
http://www.seia.org/ITC_One_Pager.pdf
And copies of the actuall bills:
http://www.seia.org/HR_550.pdf
http://www.seia.org/S_590.pdf
According to one installer I talked to (Stellar Solar), this bill has quite a few cosponsors and a reasonable chance of passing.
If it does, I don't expect panels to remain affordable for long.