There are unfortunate side effects to this, even besides the attacks on net metering that have cut financial returns for existing solar customers. Distributed generation is more resilient. With a battery, you can keep your electricity during a power outage. Outages themselves are more isolated - with a VPP individual neighborhoods could keep power, while if a transmission line to a major solar farm goes down, a whole city could lose power. Large solar farms would be huge targets for warfare or sabotage, and wouldn't last very long at all. Transmission lines to them are vulnerable to natural disasters. Economically, large utilities have more market power and can capture their regulators, leading to higher prices and poor service for consumers.
But the economic benefits of scale make it harder to justify putting panels on each individual home, when the same generation capacity can be built much cheaper at a solar farm.
But you're of course correct that this is a giant subsidy, and unfortunately it was funded by other rate payers rather than a central government, which was a nutty system from the beginning.
Net metering could still make sense; your residential solar installation might make enough to cover the gap.
I doubt the $8.50/month is the "right" charge for maintaining a grid connection, but it's what MidAmerican Energy has gotten approved in Iowa. Presumably their charges for transmission and energy cover everything adequately.
What's happening in California is new rooftop solar doesn't pencil out unless you pair it with batteries (ie you self-consume all your excess), and even then it gets iffy.
There's also the trend where operators charge fixed costs for connectivity. So even if you self-consume everything, you still pay $15-$50/mo just for the connection. That gets trickier because it punishes low-usage users like apartment dwellers and small households because that looks the same as a solar house that self-consumes most of their electricity.
It might also push people more toward smart-grid tech, which is a desirable outcome. You might pick a dishwasher that can actually help shave the peak, if it saves you money.
In C&I land, you have things like demand charges (billing by your max kW, not just kWh), demand-eligibility tiers (your electric arc-furnace plant is going to have very different charges than your warehouse), and even fun things like many flavors of demand ratchets (you have a fixed charge based on your maximum kW in last 3, 6, 12 months, or your maximum kW during the most grid-strained periods last year, or a million other variations).
C&I billing gets very creative.
Some utilities are even today experimenting with demand charges in the Resi space (don't run your dryer while charging your EV!)
The "attacks on net metering" are merely acknowledging that the proportion of renewables on the grid is high enough that balancing grid supply and demand is becoming an issue. I'm a big proponent of rooftop solar, but the reality is that 1:1 net metering just doesn't make sense once there's a critical mass of solar installed (the duck curve problem). This is not a problem unique to California or the US. If you look at other places with high solar adoption (Australia, EU), you'll find even stricter policies like negative feed-in tariffs: the utility will charge you for exporting solar to the grid.
Battery storage is a solution to that problem, but that's where prices are still too high. I'm actually surprised that battery storage is not mentioned in the article, because that's a critical component of allowing solar/wind to grow further.
Doesn't matter if it doesn't bring down the cost of electricity. For example in california PG&E will still charge a substantial "delivery fee".
Also, here the northern latitude helps, in Germany people start putting solar panels on walls and fences. There is plenty of cheap space and the efficiency isn't too bad considering the cheap panel costs.
The other major problem is the grid is not setup at all for consumers to also be generators. At least in the UK it is rare/not possible for the DNO to send power back from a neighbourhood to the grid (at least not without a total remodel of the local grid infrastructure).
So we are now hitting problems where solar is not allowed to be connected to the DNO if you have streets with a lot of solar on, because at some point the generation from the houses on the areas local transmission outstrips the demand in summer, and in that case you have too much power and nowhere for it to go (the excess cannot be sent back to the high voltage grid). The DNO cannot turn off individual solar generators easily (and even if they could, do they trust a load of chinese inverters to work reliably remotely?)
I think the key problem with solar/renewables is not undersupply in winter in northern climates (though that is a big one for true net zero) it is oversupply in the summer. It's already causing massive issues in Europe with long spells of negative pricing. Interconnectors don't really help with this because when it is sunny (and potentially windy) in one place in Europe it tends to be similar elsewhere, so everyone has too much power.
This is before the UK adds another huge amount of solar and wind in pipeline by 2030.
Note this comment only applies to northern climates. It's far less of an issue further south because AC load tends to follow solar production much more, but that is far less common in the UK.
Thankfully, the impetus for residential roof solar was always more ideological than practical. There's plenty, PLENTY, of empty unused land within a 95% transmission efficiency (hundreds or even thousands of kilometers depending on tech) of the end user, for all non-island cases.
As soon as we had it, and I looked at the tiering, time-of-use, etc, and I realized it's all an arbitrage game. I'm selling my roof space and fixed asset back to the power company, and buying power from them.
Personally I like the idea of a three-season thermal mass store, a big tank of water or pile of sand that you dump heat into when it's sunny, and extract it at will the rest of the day/week.
Utility-scale solar installations also make a lot of sense, but around here transmission capacity for that is still a massive issue. You can install more transmission capacity, but it's not cheap.
This is arguably a false economy.
~75% of costs for the power grid are not in volume electricity generation, but in maintenance. They haven't priced it that way in most places to encourage power-saving and reduce the need for new infrastructure construction, but they'll be forced to if every roof sprouts solar cells.
If volume electricity generation is the concern, doing it in a field is dramatically cheaper than doing it on a roof.
Parking lots are tougher, but I saw the first one this year.
https://www.youtube.com/watch?v=5AVO1IyfA9M
edit: I see others have linked similar videos, all good sources on this topic.
But if you put the panels basically anywhere else it becomes a lot more viable. Some houses come with a plug to connect your generator, you can do something similar to plug in your inverter. Then you can later decide to put up a solar fence or put solar panels on the balcony or whatever strikes your fancy
But they already exist and are pretty popular in Germany to put on your balcony.
https://electrek.co/2022/12/12/texas-solar-farm-flat-on-the-...
I think the efficiency figures are exaggerated, but the fact remains that such an installation requires less labour.
The aluminium frame was 25%, labor 30% and putting up the scaffold 20%.
I hope thin film solar panels integrated in the actual roof material will become more common going forward as it removes the need for an aluminium frame, you get a new fresh roof, it's lighter, no holes are drilled in the roof etc.
But everything else around solar such as inverters, cables, framing, labor, battery storage is where a large part of the cost now. Innovations in those areas will probably yield better cost reductions than the panels will nowadays. That is just wild to see!
It seems australia removed a lot of roadblocks and solar is very popular.