PHILADELPHIA (Reuters) - U.S. demand for residential solar power installations is surging despite an economic recession, thanks to government financial incentives, some easing in credit availability, and increasing public recognition of its environmental benefits, industry executives said on Tuesday.

Companies represented at the PV America solar conference in Philadelphia said the volume of their installations as much as tripled in 2008 and they see further gains this year as more people recognize that they can cut their electricity bills by at least 15 percent with an array of solar panels installed on the roof of their homes.

Faced with a cost of about $50,000 for installation of a 7-kilowatt system on a typical 2,500-square-foot house, a New Jersey homeowner can defray the expense with a $12,500 rebate from the state and a federal tax credit of $11,000.

According to industry trade group the Solar Energy Industries Association, there was an overall 16 percent increase in solar capacity, including commercial installations, in 2008.

The industry is benefiting from a cultural change that is more accepting of the need to find alternatives to fossil fuels, in part because of last year’s surge in gasoline prices to more than $4 a gallon.