isn't it logical though that the power company would buy power for less than it sells? and paying the same rate that it buys from larger producers seems fair.

The principle is fair, but the specific price can be unfair. Especially if the home as provider could be supplying into spot or other markets. Thats where a neighborhood or coty consortium/ cooperative of community users could make sense to maintain a better pricing deal from the utility.

Sorry, I forgot to add;

1. They also won't allow battery storage while connected to the grid. If they wanted to buy surplus but allowed my to store my own production, I would be fine with it.

2. They also net bill daily. So while I may produce extra within the billing cycle, they zero out excess production daily.