Oh wait...I know why. That means the individual is eating into the profits of the electric company. Can't let that happen.
Manitoba Hydro encourages people to use energy efficient furnaces/appliances/bulbs, and will infact subsidize portions of your purchases towards these items. Recently they changed their policy to allow households and local businesses to generate and sell back into the grid. The more wattage Hydro has at its disposal, the more it can sell across the border into the US - this is big time $$$.
(I've worked for Hydro the past few summers)
Anyways, I don't think the goal (for most people) would be to hit it rich off solar power, but just to generate enough to satisfy the needs of the house and sell whatever small excess they do generate back into the grid - hopefully that will payoff the invested capital during the lifecycle of the system. I really see no competition between a residential user and a commercial setup.
Omnis
But if we have no main entity in charge of the grid, how exactly do we "sell" the energy we create? I guess it would be like energy eBay or something.
What happens when harnessing solar energy is perfected (again, hypothetical) before oil runs out? Do you think we would still use it?
You would certainly still need an electric utility, and not just for the financial aspect, but also to maintain the grid. I'm thinking this whole hypothetical situation would work out better if the utility is a crown corporation, rather than something privately owned (though, at this hour I'm having difficulty explaining why).
As skip0110 said, power consumption/generation can easily be metered. That's how it is currently done.
I think the answer to your second question is entirely economic. Consider that infrastructure is already in place to harness the energy of fossil fuels. The cost of conversion to solar energy would be immense and would cause large dissruptions to services if done all at once. I think fossil fuels would still continue to be used until it is no longer economically viable to do so. ie) when the cost of fuel and maintenance for existing infrastructure is greater than the cost of installation and lifecycle maintenance of a solar energy system.
Like it or not, the world runs on money and not the warm fuzzy feeling of self-righteousness you get by being eco-friendly.