UPDATE 1-US solar capacity surges in '09 on incentives-SEIA

* Solar capacity skyrockets 37 percent on the year

* Falling module prices also helped to lift demand

* Utility-scale solar growth seen (Adds byline, context, details on utility-scale projects)

By Dana Ford

LOS ANGELES, April 15 (Reuters) - Installed solar capacity in the United States jumped 37 percent in 2009 as state and federal incentive programs helped prop up demand during a downturn, solar advocates said in a report on Thursday.

It was the fourth straight year of record growth for the U.S. solar industry, which most analysts say will emerge as a global leader in the next few years as traditional European powerhouses scale back on their solar incentive programs.

U.S. growth was also encouraged by the falling price of solar modules, which dropped some 40 percent last year, the Solar Energy Industries Association said in a report.

"Despite the Great Recession of 2009, the U.S. solar industry had a winning year and posted strong growth numbers," said Rhone Resch, president and chief executive at SEIA.

"Consumers took notice that now is the best time to go solar," he added.