>I'm hoping to see more decentralized/hyper-local power generation and storage

With the scale we're dealing with decentralization does not work. You need to centralize for efficiency (i.e. optimize power generation and maintenance per unit of land-area). Though in this case the point is moot, since we don't have any grid-scale storage solutions for wind/solar - making them non-viable as the primary power generation regardless of price.

>decentralization does not work.

This is not quite true, because the vast majority of solar generation is consumed on site, avoiding the transmission and distribution costs of delivering electrons that would normally be necessary. Which is just one of a whole motley of dynamics working in favor of solar at larger scales: the arc of solar generation over a 24hr period almost perfectly coincides with actual market demand over the course of the day, with the exception of the afternoon/evening "duck curve", so it's actually relieving pressure on peaking generation.

The important fallacy here is assuming that counterbalancing for the cycles of solar generation requires new investments, when in fact it's relieving pressure on infrastructure that already exists and is already serving those exact counterbalancing purposes. This is in addition to the benefit of offsetting alternative forms of base load generation.

To be clear you are right in an important sense about a pretty fundamental thing. There is indeed a tipping point, and when we reach that tipping point of grid penetration all of the points you have raised will indeed become not merely relevant but crucial. And I forget the exact number, but my understanding is we're nowhere near that tipping point right now. I want to say around 20% of the overall grid being generated from solar power is the tipping point but I'm not sure if that's accurate.

It's kind of like the argument sometimes people want to make about taxes which is that if you overtax it is a drag on the economy, which is hypothetically true but it's true at a given tipping point and it's a tipping point that we're not anywhere near, which doesn't tend to stop the advocates from bringing it up all the time.

> the vast majority of solar generation is consumed on site

I don't believe this is true for a vast swath of residential solar. In spite of HN's love of remote work, a lot of homes are mostly or completely empty during the day, with energy use ramping up in the evenings as people return home.

This results in homes 'selling' electricity to the grid during the day, and buying it back in the evening and overnight.

That's true in many (but by no means all) cases now, but it's a short term problem. Home batteries with capacity for a day or more's usage are on track to hit affordability in the next 5 years, which will remove this problem.

There is also a lot of scope for demand shifting. For example, timing washer and dryer runs during the day when people are out. Or running AC during the day (even if nobody is home!) so that it doesn't have to work so hard in the evening.