Bitcoin mining can serve as a price floor to incentivize green energy production - ex. An otherwise unprofitable solar farm could be profitable because instead of peak production getting sent to the grid at low or negative rates, they can mine Bitcoin and monetize that energy that doesn't have other demand.

This is certainly not universally the case at the moment. It is probably offsetting in the majority of cases currently. But I bet there are a non-zero number of renewable energy products that were able to get greenlit purely because crypto mining can function as a buyer of last resort, and this number will continue increasing.

Bitcoin mining uses a higher proportion of green energy than most other industries though, so I think this energy use criticism is pretty shallow. Some people just don't like Bitcoin and so are enthusiastic to have a reason to complain about it that doesn't require any critical thinking about energy markets. These people believe Bitcoin is entirely worthless, so they'd complain about any level of energy usage, because there is no upside in their calculus.

So Bitcoin shouldn't use renewables because there may be other uses of renewables? I genuinely don't get the energy use argument, this is much more of a government policy problem than a cryptocurrency problem. It feels like this could be extended to any company or product you don't like because you want to save the clean energy for the approved uses.