Panel pricing for PV still has plenty of room to fall. Estimates from industry analysts are saying
36 cents/watt by 2017, and even that my prove to be too high. There are competing low cost kerfless thin-silicon technologies that have still yet to hit full production, but they are clearly coming. The silicon casting technology developed at
1366 just won a round of venture funding for building a large scale automated production plant, and
GT Advanced Technology (Shanghai) just bought the
proton-induced exfoliation cleaving IP from Twin Creeks in order to bring it into full commercial production, and those are just two of the low-cost high-efficiency silicon PV techologies on the horizon.
At some price point the additional complexity of heat pumps lose their attraction, provided you have the real estate for enough PV, and that point is closer that I ever would have believed a couple of years ago.
Full system costs for rooftop PV in the US are dominated by "the rest of the system" (the racking, inverters, permitting & inspection, utility oversight, etc.) but the all-in cost for grid tied is under $4/watt installed in some places. Jigar Shah (founder of Sun Edison, a third-party ownership solar developer) was saying a couple of weeks ago that a company in Texas is projecting $1.65/watt for small scale grid-tied PV for 2014, due in part to some innovative low labor low-cost racking systems developed in India, and streamlined permitting in some of the Texas cities where they operate. The average installed cost in Germany has already crossed under $2.50/watt, so it's not an insane proposition.
It's been hard to dispel the long-held notion that PV is expensive. While that was true 10 years ago, or even 5 years ago, it seems almost like in about another 20 minutes PV is going to have the lowest lifecycle per kwh/cost of any grid source. Certainly by 2025 that will be the case, and it may happen before 2020. With panel costs hitting at $360/kilowatt in only ~3 years, they won't need a subsidy or optimal shading factors to be economic in most of the US. As the rest of system costs fall, the grid is going to be swamped in distributed PV. The only questions will be how much of the grid-storage necessary for grid-stabilty will be utility owned, and how much of it can be cheaply integrated into homes & businesses.