Earlier quoted context omitted.
The 3-4c wholesale rate is for base power (giant infrastructure generators, hydroelectric dams and such things), but solar knocks the top off the mid-day demand curve, at which time PG&E is paying much more for "peaker" power generation. But they don't have to pay you the peaker rate, they pay you the baseline rate. Anyway, to my mind, any system in which current comes out of your PV installation at 3 cents and flows…
Even peaker plants run ~15 cents these days, since the price of gas has fallen so low. edit: I'm more familiar with the Texas grid, but beyond the cheapish price of modern peaker plants, in that case the most expensive input sources (small peaker plants, and esp. spot-market purchases) are rarely used at all. Demand prediction and management is good enough to avoid the more expensive inputs, through a mixture of loca…
This data may not be publicly available, but I'd love to see graphs of current flowing out of PG&E substations vs. time of day. At some point the PV generation capacity is going to make them have weird upside-down diurnal cycles.