To add to this, I want to point out that having excess capacity is the norm with fossil fuels as well. With fossil fuels, we typically average 50% capacity factor where we are only producing half as much power as we could be, and the rest of the production capacity is sitting idle. This is essential to be able to deal with variable demand and emergencies.
The excess energy these solar panels are producing isn't "going to waste" any more than those idle peaker plants are going to waste, or all the sunlight that isn't hitting a solar panel is going to waste. You pay to build the capacity, and then production is essentially free.
Not only is overproduction not a problem, we want more of it, to accommodate for seasonally variable production. Batteries are great for storing energy at noon to use at night, but it will likely never be financially feasible to store energy in the summer to use in the winter. In the long run, we should be sizing our renewable capacity to provide enough power at the time of the year when they are producing the least, and then just disconnect some of them when we don't need the excess power.
The only potential problem I see here is that they way they are managing their grid, they are paying states to take extra power to keep their grid stable. This should be fixed, first by building a reasonable amount of battery storage, and then curtailing the excess more promptly rather than let the energy markets go negative. But it is a temporary problem.
In summary I 100% agree. This is good, this is expected, we need more of it.