Although Traverse City commissioners agreed in December 2016 to pursue powering 100percent of its grid with renewable energy, it seems there are some second thoughts hampering swift pursuit of that ideal. Traverse City Light and Power officials are not keen about the added costs. TCL&P and city leaders are now leery of committing to a deal they had been negotiating with Heritage Energy, because it would oblige them to purchase power if that company expands its current solar array. Since zoning prohibition that once prevented such expansion has now been lifted, Heritage is now planning to do exactly that, and the price at which they are obliged to purchase is far higher than current market rate. While the cost of solar power is anticipated to increase and the rate that Heritage proposes is flat – it will not increase with the market rate during the 20-year term of the contract, TCL&P officials still believe that contracting with a larger producer from the outset will still prove more competitive over the long term. Small producers, like Heritage, will never be able to compete with utility-scale producers.
TCL&P has 45 days in which to respond to the current offer, so the question will be revisited, hopefully with expanded cost estimates, in March.

Source:

https://www.record-eagle.com/news/local_news/tc-to-consider-solar-energy-offer/article_140139d1-552b-56d6-b13e-786d8cb5f199.html