Photo credit: Scott Schram

Yet another report is out there, analyzing the state of green investing. Like its predecessors this one, published by Ernst & Young, spells out dark times for many clean-tech companies. We’ve already discussed the drastic drop in solar funding in the first quarter of 2009; this report takes on the broader clean-tech sector as a whole.

Clean-tech industries include renewable energy, bio-fuels, energy storage, and more, depending upon who’s defining what. According to the Ernst & Young report, venture capital funding in clean-tech startups fell by 63 percent, with about half as many deals made, from the same period in 2008. Last year was a record high for the industry, but 2009 is looking to be a record low compared to recent years.

Yet all is not darkness. There are a few sectors of clean-tech on the rise. Energy storage more than doubled its funding from last year, with battery storage playing a huge role, raising $69 million of the total $114 million raised. Much of this is likely due to the push for fuel efficient, hybrid gas-electric vehicles, with the end goal of a fully electric car.

Fuel cell companies also took off, raising $45 million in funding compared to zero this time last year. Taking by far the biggest hit was energy and electricity generation, down 73 percent. The solar industry certainly took a big portion of this hit, but there is one silver lining that may make solar enthusiasts feel mildly content. Of the relatively small $56 million raised in the first quarter the overwhelming majority of the funding — $48 million — went to solar startups.

Source: Mercury News

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Posted on May 20th in Solar Funding by Dan.