Eh, the problem presently is lack of storage, hence the duck curve. Incentivizing people to install more systems without storage exasperates the issue and creates even bigger ramps, which require a ton of fast-ramp gas peaker plant capacity to cover. This is all covered in Capacity Value if one looks at it.Those deals dont exist anymore in Cali and haven't for quite some time.
It's swung the other way, with the utility getting a phat discount on what I produce and marking it up handsomely to their clients. How convenient for them.
Don't want to pay some equitable amount for my energy - no problem. I wont sell it to you then.
There needs to be sensible and fair incentive to spend the money, or people simply wont.
Retail rates are (supposed to be) based on the average cost of electricity. The cost of electricity in a market system varies depending on demand and availability of resources as well as the cost of those resources. If you have a glut of solar, it drives down the market price; that solar energy is not worth very much on the market. Later on, when it buggers off, the gas peakers have to fire up and fast-ramp, which is hard on equipment and since they are the only sources able to provide that, they get to bid in at wickedly high prices, and that's again reflected in the market price. These are blended to set consumer rates, which are often either tiered or based on TOU, but even TOU still employs a blending factor.