Every year for the past three years, global photovoltaic solar panel installations have set new records. What should make investors perk up even more, though, is one subset of the industry that is growing even faster: distributed solar panel installations by third parties. A great indicator of this growth is found in California today. While distributed solar panel installations have more than doubled since 2010, installations by third parties have increased tenfold. Today, third-party installations represent 70% of all distributed installations in the state. 

So what makes third-party installations more attractive for homeowners and businesses that could cash in that federal tax credit? In the video below, Fool contributors Tyler Crowe and Aimee Duffy discuss why this is becoming such an attractive option for individuals and why it makes a good business model. 

Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe owns shares of SolarCity. You can follow them both on Twitter @TMFDuffy and @TylerCroweFool, respectively.

The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.