I'd agree that the produced heat doesn't really play much of a role with respect to climate change.

> Also with those scales the change of earths average albedo with solar panels starts to have an effect, so I am not sure if renewables even are better in this context.

As your cited study points out. This heavily depends on where you place the solar panels. You can easily imagine that things like black-tiled rooftops or asphalted parking lots are actually improved in terms of absorbed heat by covering them with solar panels.