This is partly a result of the monopolistic status of utilities. Usually, in a competitive market, if you add extra supply or reduce demand, the price drops. In

This is partly a result of the monopolistic status of utilities. Usually, in a competitive market, if you add extra supply or reduce demand, the price drops. In a monopoly where the company is allowed to maintain profits, the reduced demand means less revenue and profits so they increase price. In a free market with lots of players, the profits would drop, the prices would drop, and marginal players would simply go bankrupt. It's clever marketing by utilities, however, to blame their abuse of monopoly power on solar power subsidies.