When the suspect does not have evidence of a crime, they should be reimbursed. I am all right with a legitimate search warrant giving law enforcement the right to tear my house inside and out, but after it is established that they found nothing, I can bill them for the clean-up, as well as any lost time from work.
To me the biggest problem with law enforcement today is that there is no punishment for being wrong, even when lives and families can be shredded in the process. We have malpractice insurance for doctors, why not cops?