Wednesday, July 01, 2009 at 3:28:18 PM - by Tom Staples

Venture capitalists are showing more willingness to fund solar energy and other clean power technologies despite a months-long credit crunch that has hampered lending and investments.

A report this week by Greentech Media says that in the second quarter of 2009, venture capital investments stood at $1.2 billion spread among 85 startup companies. The report notes that smart grid and energy storage technologies had seen some of the most significant funding increases, while automotive investments were also up.

The first quarter of 2009 saw $836 million invested in 59 deals, suggesting an upward trend that could be tied to renewed optimism in the economy. Still, Greentech added that unlike in 2008, there have still been no investments in solar or biofuel companies exceeding $100 million.

The report also stated that solar power had managed to lead other clean energy investments with a total of $330 million, while federal stimulus funds were credited with helping to bring about the improved investment figures.

This is likely to come as good news for renewable energy companies everywhere that have struggled to secure financing in the current credit climate, especially since earlier in the recession there were numerous reports of projects that had been put on hold because of such conditions.