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You decouple power supply from concentrated sources, this reduces the need for centralised base load power generation.

There are also gains in the community by establishing buy in from home owners, The concepts of sustainability are easier to grasp if its on your roof and you get a return on your investment.

And why not spend the tax money on this!

I'm not overly concerned with subsidising residential solar, however I think subsidising research and innovation in solar, wind, and other alternate energy systems is worthwhile and funds like this are one way of stimulating a market.

Also, you changed your question as I answered it.

If you read the article, this is a profitable investment, not a subsidy.

Assuming it's a profitable investment, wouldn't this be an opportunity for corporations to take the place of the government? For example, banks could make loans to homeowners for solar installations that could be paid back with their energy savings.