Although solar firm Solyndra’s bankruptcy has prompted questions about the government’s role in subsidizing green energy companies, some Santa Barbara energy experts say they still support federal funding.

Solyndra filed for bankruptcy two years after it received a $528 million loan from the U.S. Treasury’s Federal Financing Bank that was guaranteed by the Department of Energy.

A loan guarantee is a promise made by a guarantor that should the loan recipient default, the guarantor will pay whatever portion of the loan the holder can’t repay.

Tam Hunt, president of Community Renewable Solutions LLC, said that although the government may not have done its due diligence before using taxpayer money, another factor contributing to Solyndra’s downfall was China’s lower solar panel prices.

“Chinese panels are coming into our market at such low prices, it’s a good thing for consumers and solar but bad for a company who can’t compete with competition’s prices,” he said. “But you also have to make sure every program is free of any hint of abuses or fraud.”

Some argue that the government rushed Solyndra’s financing and that it could happen again as the Obama administration may finalize up to $10 billion in loan guarantees for green energy companies before the stimulus program ends Sept. 30.

“I think the problem with Solyndra is that the government directly provided capital to a relatively new company that was using a relatively new type of solar technology,” said Lucas Johnson, manager for Allen Associates’ Building Performance Specialists Division.

Megan Birney, a renewable energy expert for the Community Environmental Council, said the loan guarantee program is needed to keep up with other countries that provide low-cost financing. She added that a carbon tax or cap-and-trade system is the most efficient way to generate revenue, create clean-technology jobs and decrease dependence on fossil fuels.

“We don’t assess charges for the fuels that we use,” Birney said. “Not only do we have subsidies for oil and gas, but we also have subsidies by not charging true costs. The biggest problem is it’s hard to get into a market where it’s not on the same playing field.”

Taxpayers will find out how much money they will actually recoup after Solyndra goes through bankruptcy court. Pending FBI and congressional investigations will determine whether there was any wrongdoing.

— Noozhawk business writer Alex Kacik can be reached at akacik@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.