The process of government is not always perfect, nor smooth, nor even sometimes understandable. But I’d guess that having solar that’s a bit less efficient - is preferable to having all the northern states say “We won’t support it at all if it comes up
again.”
Solar is, according to experts, particularly well suited to Nordic Countries which, correct me if I’m wrong, are “northern.” So it’s not as though the money is just being thrown away by sending some to northern states, it perhaps just not the perfectly optimum way to do it if all you care about is “producing energy today.” If you care about getting the idea popular throughout the country, then maybe it’s a good idea after all.