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SolAmerica landfill solar project paused amid tariff uncertainty; MPPA and city agree to wait
Summary
The Petoskey City Manager said the SolAmerica proposal to develop a solar farm at Soul America Landfill is on hold because of tariff and supply uncertainties; the Michigan Public Power Agency and participating communities agreed to delay signing power purchase agreements until federal uncertainties clear.
City Manager Shane Horn told the council on May 5 that development of a solar array at the Soul America Landfill faces uncertainty tied to federal tariffs and supply-chain risks. SolAmerica and the Michigan Public Power Agency (MPPA) have prepared power purchase agreements (PPAs) and interconnection plans, but Horn said the developer is pausing execution of contracts until market and tariff issues are resolved.
Horn said members of the MPPA and the city agreed to wait and not execute PPAs or incur interconnection upgrade costs until the federal situation becomes clearer. He said one option SolAmerica proposed would be to remove the developer’s “development security” from the PPA to reduce the developer’s financial exposure; Horn and MPPA advised against that course and recommended waiting.
Councilmember Shields urged the city to continue exploring alternative financing and incentive options — including direct-pay tax benefits and a Michigan solar grant program — and said the city should not accept indefinite delays without evaluating alternative paths forward. Horn said the project remains viable in principle but that communities will pause signing agreements until federal-level uncertainties are resolved.
