I think the recent 200GW solar power deal between Saudi Arabia and SoftBank has more potential to solve desalination problems than Fusion (at least over the medium term).
The cost per watt of solar comes from the expenses associated with making solar panels, averaged over their lifetime.
The cost per watt of fusion will come from the expenses associated with making fusion plants, averaged over their lifetime; additionally you need something to fuel the fusion reaction.
I doubt that fusion is going to be cheaper than solar anytime soon, given that solar has the advantage of an established manufacturing process, while fusion is still in the research phase.
For the purported usage (desalination) distribution is not an issue. But obviously fusion generated electricity won't be free, though marginal cost of production may approach that (if it ever becomes a reality).
But for AC, you have both distribution and variable demand. Not sure how easy fusion plants will be able to react to demand. If they're like nuclear plants, you'll need a sizeable amount of peaker capacity as well (not that solar wouldn't need that).
Well, if transmission charges factor in losses during transmission, then the generation cost would influence some part of the transmission cost. If generation was an order of magnitude cheaper, then presumably the amount of power lost between the generator and the end user would cost a negligible amount, whereas I would assume it's currently a good chunk of your distribution costs.
Fusion reactors are mechanically simple and safe and can be made in tiny form factors, including engines. They are predicting container-sized "plants" that can power hundreds of thousands of homes. Fusion will heavily decentralize the grid (partially because of transmission costs).
Nothing is totally free of course, but fusion can do for energy what the internet did for distribution, which we can round to having made it free.
If your reactors are nearly free or last a very long time, which, given they use all kinds of super advanced stuff and have parts that are bombarded by Neutrons, I doubt.