Solar energy has several advantages compared to other types of renewable sources of energy such as easy accessibility and superior predictability. This source of energy is utilized for several purposes including heating, desalination and power generation. Generally, PV panels are employed for direct electricity generation. On the other hand the harvested solar thermal energy can be used to generate power indirectly by employing a medium such as a solar tower. PV panels are preferred for small-scale and off-grid electricity production purposes and their performance depends on various factors such as their building material, solar irradiation and operating temperature. The efficiency of the panels degrade by increasing the temperature. As such, different approaches are suggested to cool the PV panels and enhance their efficiency. The cooling methods are categorized as active and passive. An examples of the active method would be utilizing water flow, while for the passive method a thermal medium such as heat pipes is employed. In this work, the common methods utilized for cooling PV panels are reviewed, analyzed and compared. According to the outcomes of relevant published studies, efficiency enhancement of PV cells rely on several factors including solar irradiation, employed cooling approach, and the operating conditions. Normally, using thermal management approaches for hot climate conditions is more useful due to the corresponding high working temperatures of the PV cells which ultimately reduces their electricity generation capabilities.