Well the government was acting as a lender of last resort on highly speculative investments. This is a benefit of government we can take risks that market will not. This is good because the capital markets are not interested in building a better mouse trap they are interested in their own profit. It is almost impossible to get a loan for a first time process, product or idea. Also Solyndra was only 0.0001 of the budget and that loss was offset by other profits from the same program. Do you like highways, nuclear power, cell phones, satellite communication, weather prediction.... all government largess.
VERY little you deal with a is free market capitalism. Who do you send a check to every month? Mortgage, insurance, cell phone, cable, phone, power, gas, water, sewer, & whatever not a single one is a free market. None. You wouldn't want to live in a true free market capitalistic utopia anyway. The first rule of free markets is that like communism everyone makes the same amount of money. With no barriers to entry and transparent information there is no economic profit to be had. All profits are eventually driven to zero.