> If the cost for the next wind turbine or solar farm was just $1 it would be wrong to assume that your incremental energy cost is now just $1. You still have to build the coal/gas/nuclear plant to generate power when that turbine or farm is generating 0 energy.
Only if you are starting from scratch. When adding a wind turbine or solar farm to an existing system, the incremental energy cost can even be negative, if adding the new generator means you can run your thermal power plants for less time or with less power (using less fuel and reducing wear on the mechanical parts).
> And because power from solar and wind can start and stop at any time you have to keep your other base load plants fired up and ready to go at any time.
"Start and stop at any time" is an exaggeration. Both solar irradiation and wind speed are predictable in the short term, so these backup power plants only have to be ready when a power shortage is predicted.