It isn't a counter argument - it is an argument. Electricity rates are already controlled by government regulation, from pollution controls to allowable margins. Simply extending that authority to foster competition, for reasons that may not be 'market oriented,' simply allows for the fact that the 'market' is not the only factor in deciding a society's interests, however imperfectly.

As for the rich getting richer in their position of the owners of capital - that remains true in both cases, the only difference being the scale, not the reality.

Solar panels on the house provide electricity transmission as well as electricity. Every kilowatt on site is a kilowatt that isn't crowding out the kilowatt for your house in the transmission line and heating up the transmission line. Lower transmission line temperature is lower electricity losses and lower chance of overload blackout.