Comment by floatrock

This doom-loop is often repeated, but reality is far more complicated.

Very few people go fully off-grid, reality is people don't want that. Cost/benefit just isn't there unless you live off in the woods.

So instead, market structures react when penetration % becomes non-neglible. First you start seeing things like fixed-fees (minimum prices to maintain a grid connection, or "first x kWh are included"). And then you start seeing like what's in California with NEM3: the grid-export prices drop to "we don't want your excess solar" so people are incentivized to buy batteries. But because batteries make a system more complicated and expensive, people buy smaller systems overall.

So the "too much solar creates a disconnection spiral and the system falls apart" thing is a bit of fear-mongering. The system adapts, the changes in pricing create different cost/benefit ratios, and if nothing else, new AI datacenters will gobble up any power that doesn't need to flow to neighborhoods.