> ) increasing demand by expanding the ISO control area beyond California to other states so that low cost surplus energy can serve consumers over a large geographical area; 2) increase participation in the western Energy Imbalance Market in which real-time energy is made available in western states; 3) transition our cars and trucks to electricity; 4) offer consumers time-of-use rates that promote using electricity during the day when there is plentiful solar energy and the potential for oversupply is higher; 5) increase energy storage; and 6) increase the exibility of power plants to more quickly follow ISO instructions to change its generation output levels.
#4 (time of use rates) and #5 (storage) are aspects you are thinking of. That isn't the case in all markets.
The chart in the graph shows an 11k MW demand ramp up for 2016 from the lull in the early afternoon to the early evening peak demand. The market needs to be efficient - and also be able to properly handle the oversupply.
Another part of the "ug, this is complicated" comes into the cost of power hookups. Typically, that's done as a service fee on the power bill. But, if you have residential solar, you are demanding less power from the grid and paying less of the constant cost of the upkeep of the utility. This increases the service fees on the people who don't have residential solar. Also, there is the challenge of managing the residential solar as part of the smart grid - people may not want to curtail their solar mid day even if they're only making pennies - that solar investment that they made isn't going to pay itself off if it isn't generating.