US venture capital investment in clean tech plummeted 44% to $1.1 billion in the second quarter compared to the same period last year, according to Ernst & Young’s latest analysis.
But the same period in 2010 saw a record level of investment topping $1.9 billion primarily because of five deals amounting to $978.6 million alone.
Although investment is down compared with last year, the number of actual deals during the quarter only fell by 12% to 68 and Investments rose from 8% from the first quarter of 2011.
Solar companies dominate the energy and electricity generation sector, representing 21% of investment, with developer of solar thermal systems BrightSource Energy leading the way.
The alternative fuels sector took the largest hit, plummeting 57% from last year.
“Clean tech financing levels remain strong in the context of investment levels over the past several quarters,” says Jay Spencer, Ernst & Young Americas’ Cleantech Director. “We’re seeing continued commitments to solar, electric vehicles and energy efficiency technologies from the venture community, as well large corporate and private investors.”