I have a difficult time believing that suddenly, as if overnight, solar is able to compete with coal, even if you take into account the subsidizing of coal/oil/NG vs. solar.

The question is, how much of this deal is government subsidy? If Macho Springs was not subsidized, how much would they have to sell the power for?

If they are heavily subsidized, the cost of that power is much higher than advertised, and the tax payer is picking up the difference, either via higher taxes, or through inflation (caused by government debt or QE), which is a tax on those who can least afford to be taxed: the poor.