The utility generates at wholesale prices, and then they are forced to buy it back at retail prices. In a way it costs the utility twice, once in lost revenue (arguable as conservation, agreed) and twice in paying more for power than they would when generating it alone.
That is some bad math. They are turning around and selling it at the same price they paid for it. That's not a loss, that's break even.
That may sound logical, but it's not. Changing the amount of energy being generated at any given moment is a very difficult thing to do. Because of that, the utility very rarely sells everything that it generates. They make up for the lost electricity by in the difference between wholesale and retail pricing. There are a lot of other things that are also wrapped up in that cost difference (salaries for all of their employees from the CEO down to the meter reader, maintenance costs for the lines, substations, the transformer on the pole outside your house, future and/or past CAPEX projects, etc). Even if you ignore all those other costs and pretend like they don't exist, the difference between what is generated and what can be sold results in a loss when they have to buy it for the same price they're selling it.
I'm all for saying that the utility should be forced to buy excess power generated by the solar panels. But it does seem that purchasing that power at wholesale would be more fair.
And, while we are at it, have you checked the rates for commercial customers versus residential? Commercial gets a significant discount in price over residential. Fix that outright subsidy before coming after subsidies that pay for the development of cleaner forms of energy.
Have you checked the price of toilet paper at Sam's club vs the local grocery store? Any time you buy in bulk you get a discount.