Pros to solar power:
1) In most states maximum power output of a solar panel is likely to corraspond quite well with peak engery demand, which would save companies (that get charged for electricity based on time of day) a lot of money. Because peaking power is the most expensive form of electricity to produce, reducing the amount of peak would save utilities a ton of money, which would filter down to savings per kW-hr.
2) If you do a simple first law analysis of solar powers, you would see that it would reduce your overall cooling load. Because a large about of a building's cooling load is due to solar radiation, if you have a solar panel that is 25% efficient, it effectively reduce your solar heat gains by 25%. So not only would you be spending less on electricity you would be using less of it. This would also have the effect of reducing peak loads.
Pros to government subsidizing:
1) By getting people to buy the things, the companies that produce them will be able to invest much more money into research, thus making cheaper, more efficient panels.
Yes there are many cons to solar energy and they will never produce significant amounts of transportable electricity (ie energy produced by the utilities), but they could effectively reduce the overall demand for electricity.