According to Ernst & Young and Dow Jones Venture Source, venture capital spending for research and startup projects in renewable energy fell 63 percent in March
Venture capitalists spent $277 million from January to March on clean-energy projects, compared with $715.3 million in the same period last year, the report says.
Joseph Muscat, a director at Ernst & Young LLP, said in a statement. "The weak economy has caused demand for energy in general to go down."
"Despite the intense challenges of raising capital during the past four months, government initiatives and corporate commitments are points of light for clean tech companies"
"While the timing of the receipt of government funding is uncertain, we expect that loan guarantees and other government financing structures, as well as corporate adoption rates of clean technologies, will be early indicators of an upward investment cycle," said Muscat.
Solyndra, a clean-tech startup focused cylindrical photovoltaic systems manufacturer based in California, was a recent beneficiary of government funding from the Department of Energy.