Utilities already have mandates to buy X% of their power from renewable sources. They primarily do this by building/buying utility scale renewables because that

Utilities already have mandates to buy X% of their power from renewable sources. They primarily do this by building/buying utility scale renewables because that is more cost effective than paying homeowners retail rates for their electricity. Distributed generation is great because generation and consumption are next to each other, and this can theoretically reduce peak load on the grid. The problem is that the sun goes down every day at the same time, and we're back to the same peak load. The lowered rates in NEM 3.0 actually incentivize homeowners to buy batteries and load shift, which does actually help reduce peak load. Batteries are still too expensive, though, and the hope is that falling battery costs make it economical. Externalities exist, yes, but they only matter when they get priced in. Capital moves energy markets, not vibes.