Turbo, the oil companies have been HIGHLY subsidized, by everything from the construction of highway systems (with public money and often by eminent domain) to the current ethanol craze (ethanol is added to gas and makes the cost less due to the 50 cent per gallon the government gives them).
More directly, there are tax credits which are quite massive - put in force when oil was 25-30 a gallon - to promote domestic drilling. The idea was to remove these credits if oil went up in price....because you certainly don't need the taxpayers paying the oil companies to drill for $120 oil.
But, guess what? The tax credits are still in force today!
After we get done with all the direct subsidies, we get to a long list of indirect ones. The oil companies do not have to pay the real cost for the air and water pollution they cause, nor for the deaths and suffering caused by associated disease. A look at the abandoned fields will show you that they don't have to put land back in pristine condition after they are through. When our leaders tell us they must protect the pipelines and shipping routes, who is paying? We are! In fact, some have estimated the real cost of oil at over double what we currently pay.
I have relatively few complaints about oil companies - they do exactly what is in their best interests...and that is to lobby to get their way and make as big a profit as possible. But for us to say that a new technology - out of the box - has to immediately beat one which has been subsidized to the tune of TRILLIONS of dollars of infrastructure and tax credits....is just plain silly.
If you or I endeavor to start a new business, a new family, a new life or any other major change - we generally need some help and some time to do so. It's pretty clear that solar is on the brink of being competitive - to get over the top we need massive projects like that which allow economy of scale (production, R&D;, etc.) to kick in.
I've seen the solar credits yanked before - Ronald Raygun did it in 1981 and destroyed an industry which had already installed millions of square feet of panels. I would not be surprised to see it happen again....remember, the oil companies (and by extension, Bush, Cheney, etc.) don't like renewables, especially solar. There is very little chance that the same oil companies will be the leaders in the new technologies.