Are loans for residential solar installations the wave of thefuture or a temporary fad? The jury is still out, but according toseveral experts, they appear to have staying power.

The traditional financing method for residential solar has beenthird-party ownership financing, in which solar installationcompanies lease the installations to their customers, or offertheir own power purchase agreements.

More recently, though, credit unions and banks have begun todiscover this burgeoning market and offer specialized solar lending products. As a result, more and more homeownersare seeking loans through their local, trusted, familiar financialinstitutions, rather than arranging financing through theirinstallers, some of which turn out to be fly-by-nightoperations.