The market rate would just fall to near zero. The surplus from different homes would have very similar patterns. When it is sunny and bright out, everyone has surplus. At night, nobody does.
You are buying when everyone is buying and you are selling when everyone is selling.
That isn't even considering reliability. With wildly variable production, we will have to pay out of the ass for peaker plants to pick up the slack.
> The market rate would just fall to near zero. The surplus from different homes would have very similar patterns.
This assumes that all homes are using the same technology to generate power, but after the landrush to solar, rates (which are time variant) would incentivize new entrants to the "sell-to-the-grid" market to choose technologies which might be less average output per unit cost than solar, but which have different timing characteristics.
You are buying when everyone is buying and you are selling when everyone is selling.
That isn't even considering reliability. With wildly variable production, we will have to pay out of the ass for peaker plants to pick up the slack.