This is because only a small fraction of the residential rates goes to production costs, and the rest go to distribution infrastructure and operations. Distributions and infrastructure costs/ kWh go with more residential production, not down.
Think of it this way. With commercial power you might pay 0.10/kWh production and and 0.30wh distribution. You can make your own rooftop for 0.35/kw, but the grid still costs the same or more, so that gets added to your bill.
Residential rates for rooftop solar only ever made sense as a huge subsidy for early adopters.
There is a cost advantage currently, but that is a side-effect of how we currently do accounting of grid costs, not reflecting any actual advantage in reducing total costs across the country.
This is why California is now considering grid connection taxes, which would charge homeowners for electricity they generate at home.
Commercial rooftop (warehouses, big box stores etc) is a bit cheaper than nuclear, with the most expensive being the same cost as an average nuclear plant, and the low end for new commercial rooftop solar being the same as the running costs of already built nuclear:
https://www.lazard.com/media/2ozoovyg/lazards-lcoeplus-april...
https://www.lazard.com/media/2ozoovyg/lazards-lcoeplus-april...
It still shows rooftop clearly to clearly have the worst LCOE. I bet the assumptions for Rooftop dont include suboptimal builds, like builds in San Francisco, on a north facing roof, under a tree, with storage.
Rooftop can be good in niches, but it is hardly a panacea.
Ain't no sunshine.
The point is that rooftop solar is grossly inefficient and terribly expensive compared to just about anything else someone could do.
The grid scale alternatives — solar farms, wind farms, hydroelectric — can be better or worse in different ways and different times of year, but normal people can't put full size ones on their own property and such wind and hydro scale non-linearly anyway so small ones aren't as cost effective[0].
Furthermore, the reason for the link under which this is being discussed, is that the UK has land area constraints. Suitable areas in the UK for grid scale PV are basically all farms and/or designed National Parks or AONBs and/or designated green belt, and the exceptions (like disused military bases and airfields) have people clamouring over them to build new towns. Sometimes people can get grid scale PV past planning permission, but it's hard work and upsets people with power who want the countryside to look like farmland. Rooftop PV circumvents that.
[0] Except possibly geothermal/ground source heat pump. Those still provide cost effective benefit when you can do them, but the wide price range means I'm not sure which is better.