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Supply and demand
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The idea is there such an abundance of energy that they are willing to pay you to consume some of it to keep the net stable at 50 (or 60) Herz.
In practice, there are always taxes and surcharges that the final prices is not negative, but is lower than the surcharges themselves.
Too much energy is not good for the system, so there must be a way of compensation.
Can they not just cut off some of the panels with some sort of breaker when the output exceeds consumption/storage?
They could, but those breakers are not currently installed in many many setups.
They started being mandatory in Germany last year, but many countries don't have it.