[ViewTrick1002]

> Whether there are better models, I will leave to people who know more than I do, but it is certainly a very common way to do this.

It is fundamentally how the grid works. You can bring it down to a singular household or company level to see the raw incentives:

Why should a household or company with solar and storage buy expensive grid based electricity when their own installation delivers? They don't.

Why should this household or company not for example charge their battery on their battery when the price is low and sell/use it when the prices are higher?

Why should this household's or company's neighbors buy expensive grid electricity rather than the surplus of renewables and storage? They don't.

With the distributed electricity generation renewables enable monopolized grids no longer function. Because consumers have a choice and can vote with their wallet.