Considering that the office building I work in spends around $750k a year on electricity I'd love to see the price on a self contained 1mw electric plant.
The fleet of utility trucks constantly repairing lines and replacing transformers could be replaced by refueling vehicles making regular deliveries to every office building, industrial plant and shopping center.
All these things claim to do is make heat. You still need a way to turn heat to electricity. It is much cheaper to turn heat into electricity on a big scale than small scale. And servicing a couple hundred million boilers is going to be more expensive that servicing the grid.
The grid will probably survive.