Clean energy technology entrepreneurs might seem to have reason to be more optimistic these days than their counterparts in other fields such as software and technology. After all, most VCs and industry observers maintain that quality clean energy startups remain good candidates for funding even in this challenging environment. However, promising clean energy startups can get caught in the dreaded funding gap between proof of concept in a lab setting and the establishment of commercial viability that might attract venture capital.

This is where state support can be crucial. In Massachusetts, the SEED funding program administered by the Massachusetts Technology Collaborative’s Renewable Energy Trust has brought almost $5,000,000 to early-stage clean companies, mostly in the form of convertible debt, in deals up to $500,000 matched by other debt or equity investment.

The program is in a bit of a state of transition following passage of 2008’s Green Jobs Act. Under the Green Jobs Act, the primary responsibility for fostering entrepreneurial innovation in clean energy will fall to the newly-created Clean Energy Technology Center, which has been assigned to run the next generation of the SEED program. However, the SEED program is continuing to receive and review applications during this transition.

Recently, the EEC hosted the Environmental Business Council and its guest speaker, Phil Guidice, Commissioner of the Massachusetts Department of Energy Resources. Commissioner Guidice (who also serves, by statute, as chair of the board of the Renewable Energy Trust) shared his thoughts on the status of clean energy development within the Commonwealth, and also provided, in a Q-and-A session, a progress report of sorts about the establishment of the Clean Energy Technology Center. Commissioner Guidice noted that the members of the Center’s board mandated by the law have been elected and work is proceeding. We will keep the EEC community apprised of progress on this important set of initiatives.