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When it does these deals, Solect sometimes invests its own capital in the projects, but sometimes it seeks outside investors. Huntley said there's no shortage of potential investors, from private individuals to corporate energy- related firms to specialty funds created to make these investments. "I probably get a call a week from an investment company looking for a project to invest in," he said. "Massa - chusetts is an attractive market." The market is strong enough that Huntley said there are now some "really creative financing structures" being cre- ated on Wall Street for solar investment. But he said that type of investor is typi- cally more interested in large solar farms than individual rooftop installations. Meanwhile, on the residential side of the solar market, homeowners getting solar panels installed on their roofs are increasingly inclined to own their own arrays, according to Susan Boucher, marketing director for the Hudson solar installer New England Clean Energy. Back in 2012, Boucher said, "every - body wanted to talk about leasing." But she said the public quickly grew a bit skeptical about letting an outside company own the arrays on their roofs. That's partly because the financing market for individually owned solar systems has grown tremendously, giv - ing homeowners more options. "Loans have been great," Boucher said. "They've been a game-changer." Boucher said there are a number of national players that design loans specifically for residential solar. These deals typically include a short-term, no-interest loan for 30 percent of the system, which the homeowner pays back after receiving a federal tax credit. Then, the rest of the system can be paid off over 10 to 20 years, with the help of the electricity savings and SRECs they provide. Unlike home equity loans, which are another avenue for financing installations, they don't require any col - lateral beyond the systems themselves. State support of solar financing a boon? This fall, another sort of financing for residential solar is also on the horizon thanks to a new state program. The state Department of Energy Resources (DOER) will use $30 million to help local banks and credit unions make attractive loans for residential installa - tions. The funding will allow lenders to offer lower interest rates than they otherwise could, take slightly larger risks on people who might not other - wise qualify for a loan, and provide assistance on loans to moderate-income borrowers, DOER said. The state hopes the program will push the residential solar market away from leasing and toward individual ownership. But Boucher said with the market already headed in that direction the role of the new subsidized loans isn't completely clear. "We're all curious to see what hap - pens," she said. "The solar loan market is fairly evolved at this point, so they may be behind the eight-ball." At least one locally based lender has already dived into the residen - tial solar lending market. Last year, Marlborough-based Digital Federal Credit Union (DCU) made a deal with Sungage Financial, a Boston firm that develops solar loans and partners with financial institutions to fund them. Sara Ross, cofounder and CEO of Sungage, said the loans often give home- owners a way to finance solar systems where they can put no money down and then use the savings and subsidies from the system to pay the loan off. "They're actually doing no work to go solar, so solar is paying for itself," Ross said. Sungage is now active in 10 states and works with 20 installers in Massachu- setts alone, providing an alternative for people who might otherwise go with so- lar lease or take out a home equity loan. Ross said DCU is a large, forward- thinking credit union, which makes it a good partner for Sungage. "They're experts in being good, compliant consumer lenders," she said. "They know how to do that really well. We know how to design products for solar, we know how to talk about how lending fits into solar." Ross is skeptical about the need for the new state solar loan program— which, of course, would compete with Sungage—arguing that the market is already being served well by the private sector. She said she'd like to see the state put its energy into helping low-income Massachusetts residents afford solar systems instead. "I would love to see the state focus their efforts on that part of the popula - tion, that really important effort," she said. "I see no reason to pour additional ratepayer dollars into supporting the segment of the market that's working." For now, the solar finance market does seem to be getting more solar in - stallations done all the time, at both the commercial and residential levels. That provides benefits for the systems' own- ers and the companies financing them. But Zelman, the MutualOne senior vice president, said it's good to remem- ber that there's also a larger context to consider. "I believe it's probably a good thing in total because it gets us thinking about a renewable world versus a throwaway world," he said. n Craig Huntley, partner and chief development officer for Solect Energy in Hopkinton

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