And I expect solar to get cheaper. But they seem to be saying this is in the future, and they don't get their plant online (at 20% capacity) until 2007Q3. So this doesn't explain how they can contract today to put up panels and sell the electricity to me at below utility cost.

If they buy an expensive panel today, they have to amortize it on today's cost. It doesn't help that they bring the cost down in the future. Unless this is a way to lose investor money to develop "market share" until the install can be profitable. But that doesn't make a lot of sense. There is not much market share on permanent installations.

I would love to see them get the price that low and more clean power spring up. I just want to understand how they do it.

(I guess there are some aesthetic issues to turning our rooftops into a sea of panels, but they are not as bad as the aesthetic issues of staring at the smog.)

Another issue that would be a great problem to worry about -- how to handle hot, cloudy days. The existing grid has to still be able to handle that peak load, but if that carbon-burning equipment isn't used much on sunny days, how will it end up priced?