In California consumer electricity is high because of distribution costs stemming form wildfire risks from distribution in rural areas and sprawl into the wildland-urban interface where many people live as urban areas have historically blocked development. Wholesale generation costs are some of the lowest in the country.

These costs of distortion vary very little based on how much you as an individual consume but they are awkwardly bundled into per-unit charges. As a renter in an urban area I certainly don't think I should pay those costs while those with home solar don't! At current prices I really don't think we should be subsidising home solar at all since it is so much more expensive than utility scale solar.

While a small part of that cost comes from tariffs on solar panels, they're so cheap it doesn't make much difference. The bigger part of the cost differential with Australia seems to be much higher permitting and sales costs.