The generation is distributed. That only benefits the people who have panels on their rooftops. If we want them to share the excess with others during a power outage it requires further grid investment.

I think homeowners should install solar panels and batteries where it makes economic sense. If there's money left over after funding utility-scale solar then it should be used for EV incentives and/or funding electrified mass transit. The whole point is to electrify everything rapidly and reduce carbon emissions.

You absolutely do not want them sharing the excess with neighbors during a power outage, this is how you get dead linemen.

Solar panel grid tied inverters generally will refuse to function if there's no external power coming in.

The benefit from the distributed generation means that if your local area has large loads added you don't necessarily need to upgrade the HVDC lines from the power plant to accommodate.

Solar farms don't work during power outages either. When the power isn't out, you get to use the power from your neighbor's solar panel.