Partial shading poses a substantial challenge for Photovoltaic (PV) cells, which results in a rapid decrease in the panel’s power output with the formation of hotspots. The experiments have analyzed the presence of a leakage current in shaded cells, resulting in a continuous increase in cell temperature and subsequent power losses caused by heat. The hotspot problem remains as a significant concern within shaded cells. A comprehensive analysis of hotspot problems has been carried out to address this challenge by utilizing the mathematical models that assess power losses and reverse-biased voltage. MATLAB/Simulink simulations and laboratory experiments involving I-V and P-V curve characteristics have been employed to interpret the panel output power. Active Mitigation Techniques (AMTs) have been introduced to enhance output power by eliminating leakage current, reverse voltage, and power losses in shaded cells. Resulting in a significant increase in panel power efficiency under shading conditions, as elucidated by AMTs. Furthermore, all passive and active techniques have undergone verification through MATLAB/Simulink simulations and laboratory experiments. A comprehensive survey has been presented into various factors, including panel power losses, mitigation model design costs, cell temperatures during shaded and non-shaded conditions, and panel cell reliability.