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Watertown Regional Airport Secures $3.65 Million FAA Grant for Innovative Solar Energy Upgrade

Watertown Regional Airport terminal on grassy airfield, with Fly ATY logo and Northeast Radio SD badge over parking lot.

Northeast Radio SD News – Watertown, SD - The Watertown Regional Airport is prepping for a structural sustainability upgrade following a vote by the Watertown City Council on Monday night. Lawmakers approved authorization for City Manager Alan Stager to officially apply for, sign, and accept a massive Federal Aviation Administration (FAA) Voluntary Airport Low Emissions (V.A.L.E.) grant.


The greenlit project outlines a total capital investment of $3,650,000 to construct a commercial-grade solar energy system on the airport grounds, fundamentally changing how the municipal transportation hub powers its daily operations.


Offsetting a Massive Power Bill

The initiative is designed as a direct countermeasure against rising municipal utility burdens. Despite executing several localized operational efficiencies and routine cost-saving adjustments over the past several seasons, the Watertown Regional Airport’s baseline electrical overhead has hovered near $90,000 annually. This power demand single-handedly devours approximately 20%—or one-fifth—of the facility’s total yearly operating budget.


By generating a continuous block of green power directly on-site, the upcoming solar installation seeks to drastically reduce long-term operating costs.


“The project represents another step in the Airport’s long-term strategy to maintain financial responsibility while avoiding additional costs or fee increases for tenants and users,” City Manager Alan Stager detailed in his executive brief to the council.


Carport Engineering: Preserving Airfield Infrastructure

To bypass the typical land-use challenges associated with massive solar arrays, project planners have opted for an innovative infrastructure layout. Rather than clearing open fields or encroaching upon safety zones near the runways, the solar panel array will be built entirely over custom, elevated carport-style structures.


This structural framework allows the airport to position the generation footprint directly over its existing paved blacktop parking lot areas. By canopying the parking stalls with solar arrays, the facility secures several dual-benefit advantages:


·         Land Preservation: The layout completely preserves the surrounding perimeter green spaces for future aeronautical expansion or runway buffers.

·         Passenger Comfort: The carports provide covered vehicle protection for commercial travelers, shielding parked cars from extreme South Dakota weather.

·         Reflected Heat Utilization: Placing solar structures over pre-existing asphalt leverages developed ground footprints without introducing new environmental disruption.

Navigating the Multi-Million Dollar Capital Structure

The financing mechanism behind the $3.65 million project features heavily subsidized federal and state funding lines, insulating local taxpayers from the bulk of the initial construction costs. The capital stack is structured through a precise matching formula:


[Federal Share (FAA V.A.L.E.): $3,467,000 (95%)] ---> [State Share (DOT): $91,000 (2.5%)] ---> [Local Municipal Match: $91,000 (2.5%)]


While the city’s required local match sits at $91,000, municipal accountants have uncovered a way to neutralize the remaining cash burden. The City of Watertown is slated to receive approximately $94,500 in direct federal reimbursement funding stemming from a separate, historical reimbursable agreement executed with the FAA back in 2021. Administrative staff confirmed these incoming legacy funds will be funneled directly into the solar project, completely offsetting the city’s matching obligation.

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The technical execution, engineering reviews, and construction timeline will be managed jointly under the direct oversight of Airport Manager Ian Meriwether-Chalfant and City Engineer Justin Petersen. With the council’s conditional authorization locked in, formal contract awards will proceed immediately upon final funding notification from the FAA.

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