I think you're misunderstanding plantain's point.
Where I live, in Argentina, every house has a water tank on the roof, which is filled from the water main through a float valve, like a toilet tank. Many houses need a pump to drive the water up to the water tank because the water main has such low pressure. This is somewhat expensive, and the pumps, float valves, and water tanks fail sometimes, which is inconvenient. And the tank is not really that high up, so the water pressure at the faucet is not that high, and it's somewhat variable, which is inconvenient when it changes the temperature of the shower.
Some other places I've lived, such as various places in the US, instead have a large shared water tank for an entire neighborhood, town, or even city—a so-called "water tower". If you've been to the US, you may have seen these. Making this work involves several expenses:
- Larger-diameter water mains to reduce head loss when water demand is high.
- Highly responsive repair crews to respond rapidly to water main breaks, because the higher-pressure water with a high flow capacity can be very destructive.
- The construction and maintenance of the large water tower, which is very dangerous if done badly.
- A high-powered pump to get water up the water tower in the first place.
However, these expenses turn out to be significantly smaller per person than the expenses of small per-house water tanks and water pumps. And they provide better service. (Also, because people are stupid, in the US they build many of their houses out of wood, so they need fire hydrants, which require the larger water mains anyway.)
So, the fact that people in my neighborhood Argentina are spending more to get worse water service is a failure of coordination.
Of course, people in the US can still put water tanks in their houses if they want to. In earthquake areas, it's even recommended to have a store of potable water that isn't dependent on the water main. But, because they have succeeded in collectively building excellent municipal water systems, they generally don't need to.
The claim that plantain is making is that people actually choosing balcony solar panels is a symptom of a similar failure of coordination. To me that seems plausible but not necessarily correct, for reasons I've explained in https://news.ycombinator.com/item?id=45487051.