Even 25c/kWh is cheaper than what it'll cost to go off-grid. For grid-tie, the economies of scale kick in around 8-10kW, but your average residential suburban home in CA doesn't have enough south-ish facing roof for 8-10kW.
perhaps, but if my folks were paying 25 cents/kwh i would buy solar panels where i live now, i think i could pull it off.
payback should be in 8 years if you're off grid completely.
that said most people can't. and the reason why is because the only thing they know is:
professional installation: 1 dollar per watt.
grid tie inverter: 1 dollar per watt.
letting the utility buy your own power for less than half the residential rate? priceless.
but once you add up all the inscentives and government cash, yes it is very profitable if you can sell the utility power at 46 cents a kilowatt hour.
the key thing to do is shift all your power to onpeak hours.
cook food with gas, heat your hot water with a heat pump during peak hours. (yes this does work and a few people have built their own systems using just regular propane as a heat fluid, you don't need no titanium turbines and co2)
put your washing machine on a timer to wash your cloths while you're at work, etc, etc.
once you do all these things and half a dozen others your battery load is minimal.. and then you can afford to experiment with lipho4 cells which should be cheaper than lead acid on a lifecycle basis (but no one has proved it yet)