Size key to success in solar panel sector, study shows

China dominates the world in solar-panel production because it has achieved economies of scale and well-developed supply chains, according to a study by the Massachusetts Institute of Technology and the United States Department of Energy.

The study found that those factors were more significant in China's domination of the production of photovoltaic systems than its low labor costs.

"The competitive advantage of China is not inherent; it is built and therefore can be equalized," the study said.