Capitalism does solve it. Eventually. It takes the information in steps and gets to a solution that experts were talking about decades before. This is not a good way to do things.

It tends to overinvest in the thing that has the most immediate ROI. That's been solar. Wind/water/storage/long distance distribution are all important pieces of this, too, and this has been known in climate and civil engineering fields for a while. Solar can't do it all by itself.

A sensible system would even out the investment in each. The wind often blows when the sun isn't shining, so you don't need as much storage to do the in between parts. Water not only provides an easily adjustable baseload (nuclear does not adjust very well), but it also doubles as storage. In fact, if we could link up all the hydro dams we already have to long distance transmission, we wouldn't need any other storage. Though that isn't necessarily the most efficient method, either.

What capitalism does is invest in solar, find that causes negative prices, and then invest in the next best ROI to solve that. Perhaps it's storage. That results in a lot more storage than would otherwise be needed than if wind/water/long distance distribution were done alongside it. Or maybe the next best ROI is wind, but there are still lulls lacking in both sun and wind--as well as periods where you have too much of both--so you still need storage.

And what capitalism really doesn't want to do long distance transmission. It's not just big, but it's horizontal construction. That means rights to the whole route have to be purchased. It means environmental concerns along the entire route have to be thought out. It means soil has to be tested for stability and footings made to suit for the entire route. Capitalism almost has to be beaten into submission for anyone to build anything horizontally. (See also: trains and highway systems, both of which came with substantial government investment and incentives).