There will still be a grid. The scenario you mention will be useful for some, but assuming $80/month for electricity over a paid-for grid vs. $10,000 for installation of cheap solar panels+batteries gives a pay-off time of about 10 years. (Currently solar water heaters cost about $5,000, so the best is 5 years.)
I don't think most will be willing to take that capital investment.
It would be interesting to see how distributed solar compares to grid-based distribution in the face of large disasters like a hurricane or ice storm. Especially if the power lines were underground. I assume that those with damaged panels would quickly look for replacements, causing an instant demand and price spike. While the large electricity companies would have stockpiled reserves and have agreements already in place to handle the short-term demand. I don't know how this would affect the overall long-term costs.
IIRC, solar prices have been dropping at a rate of 7% per year. If that keeps up, and if the grid price remains constant, solar will eventually become cheaper than grid.
In 1992, would you have told me today's smartphones would be impossible?
If you only lose a few solar panels in a storm, and most of the panels on your roof survive, you may just use a bit less electricity for a while.
I don't think most will be willing to take that capital investment.
It would be interesting to see how distributed solar compares to grid-based distribution in the face of large disasters like a hurricane or ice storm. Especially if the power lines were underground. I assume that those with damaged panels would quickly look for replacements, causing an instant demand and price spike. While the large electricity companies would have stockpiled reserves and have agreements already in place to handle the short-term demand. I don't know how this would affect the overall long-term costs.