Investors are rejecting green energy startups because of shaky government support and a recent drop in energy prices. Industry experts say alternative energy sources took an especially hard hit in the wake of a natural gas boom.
The U.S. government may also soon be forced to scale back on supporting wind farms, solar panel manufacturers, ethanol producers and alternative fuel cars. Investors are now starting withdraw money, because these companies have been unable to prove they can be profitable on their own.
Government officials have yet to renew a federal tax credit for wind farms that will expire at the end of the year. If Congress does not renew the credit, new turbine construction could be dramatically reduced.