If venture capital investments are any indication, the future is sunny for clean technology.
According to a recent Ernst and Young report, VC investments in clean tech companies in the second quarter of the 2010 fiscal year reached $1.5 billion – a 63.8% increase in capital compared to the second quarter of the 2009 fiscal year. Nearly $439 million of that $1.5 billion was invested in solar in the second quarter, a 183% increase from the second quarter of 2009.
This astounding growth means that green tech investments have rebounded to the record levels reached during the third quarter of 2008, before the global economic collapse that temporarily put investments on hold.
This growth is indicative of trends in the American solar industry. At the end of 2009 the U.S. ranked fourth in total solar capacity, with 2.09 gigawatts installed, behind Germany (9.79Gw), Spain (4.01Gw) and Japan (2.68Gw).
However the U.S. may be on track to become a more dominant solar market. There is currently 23Gw of solar capacity under development in the U.S. – enough to electrify 4.4 million American households. Solar demand in the U.S. is expected to grow 75% in 2011 over 2010 levels, and 1.5-2.0Gw of solar capacity – 1.36Gw in California alone – is scheduled for installation next year.
While this growth isn’t quite at Facebook levels yet, the momentum pretty extraordinary and we’re excited to be a part of it.
September 21st, 2010 at 1:32 PM
[...] PV and concentrating solar power (CSP) venues – increased by 37 percent. This, according to an Ernst and Young report, because venture capitalists invested $1.5 billion, or 63.8 percent more, in solar energy during [...]