Earlier quoted context omitted.
This is all rather bizarre. If PG&E charges 30 cents/kWh for a marginal kWh delivered, then either something is quite wrong with the pricing model or it really does cost some respectable fraction of 30 cents/kWh to get a marginal kWh through their system into their distribution network where the customer is. If it's the latter, then reduction of 1 kWh delivered should save them the same amount of money. I think the r…
The issue is that you have to size the hardware for a multiple of the power draw you expect and the cost doesn't go down because people use less temporarily. You also have to do all the vegetation management and billing and it and billing regardless of the amount of kWh that are used even if a solar install is negative. They might draw today and it has to be available.
This is true for non-solar customers too. It may be more true for solar, but unexpectedly high residential loads happen for all kinds of reasons. (A big one is heat on a very cold day, and that tends to be a correlated load.)