In recent years, the use of solar energy for electric power generation through photovoltaic cells has experienced outstanding growth due to increased efforts to reduce carbon emissions and ensure sustainable growth of the energy supply. However, low conversion efficiency has been a significant problem for photovoltaic system applications. According to previous studies, the conversion efficiency of the photovoltaic panel decreases at high temperatures. Studies suggest that increased surface temperatures above 25 °C lower electrical efficiency and power production. Every 1 °C increase in panel temperature over 25 °C results in a 0.45% reduction in output power efficiency. Therefore, a variety of cooling techniques have been carried out to make the system more efficient by avoiding the issue of temperature rise. In this review, various cooling strategies, i.e., air and water circulation, phase change material, phase change material with additive materials, heat sinks, radiative cooling, and thermoelectric photovoltaic panel cooling systems, are compared and contrasted with a detailed discussion of each article, and finally, recommendations for future work are suggested. According to various scholars, active cooling of photovoltaic panels results in temperature reductions of 20 to 30% on average, whereas passive cooling achieves reductions of 10 to 20% on average.