I know California has reduced the incentives to purchase solar panels. You have to also have a battery backup system which increases the costs considerably. I'm guessing we may have too much solar in the day and not enough storage for the energy created.
A partly cloudy or partly sunny day produces some insane changes in output without a battery system to smooth them out
There is a limit to the size of the instantaneous increases and decreases in generation that the other generators on the grid can compensate for
The battery increases the upfront cost but also increases the roi very much (at least where I am living). You get way less money for feeding energy to the grid than you have to pay for withdrawing energy(as you said some utilities even limit/forbid feeding during peak hours). In my case that means (Austria): Sell 1 kWh - 0,04€ Buy 1 kWh - 0,25€