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I don't mean net metering, I mean if you use 1kWh from your solar panels that's 1kWh you aren't buying from the grid. That's the big advantage which doesn't depend on subsidies.

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The key point is that the difference between "wholesale electricity" and "retail electricity" is based on total costs which don't change if you buy 1kWh less from the grid - while it's currently priced "per kWh", it's not really a marginal cost but a fixed one, so people in aggregated would have to pay the same total amount to the grid no matter how much home solar panels are built.

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.

Exactly. Lets say you and your neighbors each pay $100. You put in solar for $90, and save $10. Because most of the power grid costs are fixed, your neighbor is now has to pay $200 to pick up the slack.

This is why California is now considering grid connection taxes, which would charge homeowners for electricity they generate at home.

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