Oh, you don't even know now messed up it is. California tells some utility solar farms to turn off their solar systems during peak periods. It's called 'curtailment'
See daily reports from the Independent System Operator's website:
California ISO - Managing Oversupply
The shift to a clean, efficient and modern grid is essential to California's economy and its environment. This transition to a low-carbon grid provides challenges and opportunities, as the state incorporates increasing amounts of renewable energy on to the electric system. Sometimes, during the middle of the day, California's renewable resources can generate more electricity than is needed.
During these periods of surplus energy, the ISO's market automatically reduces the production of energy from renewable resources, or “curtail" generation. In rare instances, when economic bids from generators are insufficient, ISO operators manually curtail production to maintain the balance between supply and demand.
While curtailment is an acceptable operational tool, as increasing amounts of renewable resources, oversupply conditions are expected to occur more often. The ISO is seeking solutions to avoid or reduce the amount of curtailment of renewable power to maximize the use of clean energy sources.
Yes, during the time of day we get charged the absolute peak price for electricity, the state is telling some solar farms they can't sell their electricity. Those folks would happily sell me electricity for far, far cheaper than the $0.60/kWhr (summer afternoon rate) I have to pay PG&E (yes, there's a necessary markup from wholesale to retail), but they aren't allowed to compete.
Home solar actually makes the curtailment problem worse as PG&E is forced to buy a home owner's excess solar. That makes it even more likely commercial solar farms will be curtailed.
Yes, I understand the reasons for curtailment. But, man it sure is frustrating to see all of that green energy wasted because PG&E has long term contracts that force it to buy fossil fuel based power in favor of green energy.