Expensive compared to what? CO2 emissions? You already get a 30% federal tax credit as well as CA state and local utility incentives, what more is necessary? A free system?
I agree a carbon tax would be ideal. It seems politically impossible though, so you achieve what you can.
"Cheap enough" should take into account the expected future costs of climate change. That's the major reason for subsidies and regulations to encourage renewable energy usage. There is a huge externality to account for.
There is a role for regulation but a carbon tax is the way to go.