buy solar panels from them instead of loaning them the money?
Because the Republicans who created the program wanted to create a loan program rather than actually invest in the country.
The Energy Police Act of 2005 was their baby, as was the one in 2007.
A firm order from the government for a few million units would be way too socialist for them.
In the case of Solyndra, the modules were not available, yet. That's the thing about funding early research - it might fail. Certainly, the US government could buy an extensive amount of panels from a US owned company like Sunpower, but without the research aspect, that only pays manufacturing workers, possibly overseas where people are willing to work for less.
Good job. Excellent question. However, the government is not allowed to be involved in any activities that would effect Big Oil. Because the government benefits from utility companies selling us electricity, water, etc. they are not allowed to empower the public in any way whatsoever. Think about it, if people actually invested in solar panels, they would no longer have some of their utility bills, meaning they would have excess amount of money. From the perspective of the establishment (big business and government or fascism), they fear the people having money to spend because that means they might one day spend it somewhere else or better yet begin saving and not spending.
For me, the reason is that... there is not much money in renewable energy. Unlike in oil etc...
Once all household has solar panels to power up their home, nobody will be needing oil again and that is a big lost to the government specially to oil producing countries.
Instead of giving Solyndra $535 million loan. Would it have been better to
buy solar panels from them instead of loaning them the money?