MBS cuts costs to fund solar project, meet bond payment

MBS International Airport enters 2026 with a new budget heavy on cost reductions to allow it to make good on a required bond payment this year as part of its airport-wide solar installation upgrades.

The airport commission, in adopting its 2026 spending plan of $5.1 million – a 2.1% increase over 2025 – continues to support MBS’s commitment to trimming energy costs and positioning it to be ready for emerging technologies in the aviation industry.

These changes include electric aircraft and the rise of passenger drone-style operations through companies like Beta and Joby, said James Canders, MBS Airport Director.

“In addition to the energy savings, this solar project also positions MBS for the future of aviation,” he said. “Electric aircraft are still in the early stages of adoption, but Michigan has already made significant investments in airport readiness for this emerging technology.”

In August of 2025, Lansing’s Capital Region Airport and BETA Technologies, a Vermont-based aerospace company, installed the first electric aircraft charger in Michigan. Expect more airports to follow suit as they move toward more sustainable and cost-effective operations.

“Over the next decade, I expect we’ll see more movement in this area,” Canders said. “We want MBS to be ready as electric and advanced air-mobility technologies grow, and this project helps ensure we are prepared.”

MBS recently was issued a $5.5 million bond that is funding the new parking lot canopies and solar arrays across the airport campus. The bond contract calls for the airport to make a payment of $609,000 in 2026 as part of the 20-year bond payment schedule. These expenses, said airport officials, are expected to be largely offset by significant energy savings costs moving forward.

Reducing energy costs also catches the eye of airlines, an important consideration for MBS. The regional airport has been attempting to lure a new carrier for the past five years.

“The solar improvements will have a major long-term impact,” Canders noted of the electric vehicle charging stations and the supporting infrastructure that is being installed at MBS. “Solar generation will reduce our terminal’s electrical costs by more than 50% annually and our airfield lighting costs by roughly 99%.

“Utility costs are one of the primary concerns airlines raise during lease-rate and service discussion, so Delta and United have been very supportive of the project. Lowering these costs helps strengthen their long-term presence at MBS,” Canders continued.

To balance the bond-related expenses in the new budget, Canders cited strategic reductions in marketing initiatives and the trimming of several general expense categories to facilitate bond payment.

Still, “the largest portion of expense reductions came from reduced energy costs associated with the solar project,” he said. “Even with those cuts, the overall financial health of the airport remains solid.”

To implement its ambitious solar project, MBS has been working with Veregy, an industry leader in helping public and private entities transition to energy-efficient systems.