Why not both? One works better for people not living in cities, and the other one better for high-density areas.
Right, but as always, ROI is hardly the most important thing in life, there is more considerations than just "makes more money". For example, as someone affected by a day long country-wide electricity outage where essentially the entire country was without electricity and internet for ~14 hours or something, decentralizing energy across the country seems much more important, than optimizing for the highest ROI.
But again, this is highly contextual and depends, I'm not as sure as you that there are absolute answers to these things.
Decentralizing through subsidies at the homeowner level is maybe not the best use of money.
Consider the lower production cost of renewable electricity: in the long run, it offsets the investment. Bonus: no risk of accidents, no hazardous waste, no dependence on a fuel source, no weapons proliferation...
Decentralizing solar power reduces electricity transmission costs and improves reliability. This doesn't offset the additional cost, but it's not negligible.
If you personally have battery backup, that helps you personally and you should pay for it, just like you might pay extra to turn up the heat while I keep it lower to save money.
It's not as if homes outside of cities have their own diesel generators to power their house.
(Since I'm guessing from this line of comments you'll point out the less than 1% of people who actually do do this, maybe it's better to focus only the 99% here).
Yeah, no true, I don't understand the point/argument though?
More people relying on renewables == long term better for everyone on the planet
That includes moving people outside of cities to renewables energy sources, is your point that this isn't so important because they're a small piece of the population usually?