What are the prospects for solar being the catch-all solution to our energy problems?

Most environmentalists will say that it cannot, and then go on to list the array of "belt-tightening" solutions that need to be addressed. They and other naysayers will point to the low efficiency of solar panels, or the manufacturing expense, or what-have-you. Usually an improvement in technology is not factored in, but that's because they tend to be taking the wise and conservative position of doing what we can with what we have, not hoping for a breakthrough that may never come.
Ray Kurzweil, noted futurist,
doesn't quite see it that way, and neither does the panel he sat on at the request of the National Association of Engineers. With a series of strong predictions under his belt, and a penchant for seeing dramatic changes down the line for humanity, Kurzweil provided a no less bold prediction by suggesting that solar will be supplying all of Earth's energy in 20 years.
One of the reasons they cite is the diversification in the solar market currently underway. Instead of just the traditional photovoltaic panels, installed in static racks to catch what sun they happen to be pointed at, the latest generation of solar uses sun-following computers, concentrators that use just a fraction of a typical photovoltaic cell to generate power, and innovative ways to use the heat from a solar concentrator to generate electricity.
The other reason seems to be that technological advance simply continues to accelerate. In a concept that Kurzweil calls the Singularity,
technological advance accelerates constantly, and the time it takes for a new technology to reach 80% of the population decreases with every cycle of innovation. Mobile phones, for instance, have reached a staturation level in less than 20 years what it took Alexander Graham Bell's telephone a century to achieve.
If Kurzweil is right, and there's no reason to think he might not be at this point, the energy situation could rapidly become a question of the past, in the same way that instant, round-the-world communication has become a given. If solar is competitive with coal in five years, the possibilities indeed become limitless.