Photovoltaic (PV) technology plays a crucial role in the transition towards a low-carbon energy system, but the potential-induced degradation (PID) phenomenon can significantly impact the performance and lifespan of PV modules. PID occurs when a high voltage potential difference exists between the module and ground, leading to ion migration and the formation of conductive paths. This results in reduced power output and poses a challenge for PV systems. Research and development efforts have focused on the use of new materials, designs, and mitigation strategies to prevent or mitigate PID. Materials such as conductive polymers, anti-reflective coatings, and specialized coatings have been developed, along with mitigation strategies such as bypass diodes and DC-DC converters. Understanding the various factors that contribute to PID, such as temperature and humidity, is critical for the development of effective approaches to prevent and mitigate this issue. This review aims to provide an overview of the latest research and developments in the field of PID in PV modules, highlighting the materials, designs, and strategies that have been developed to address this issue. We emphasize the importance of PID research and development in the context of the global effort to combat climate change. By improving the performance and reliability of PV systems, we can increase their contribution to the transition towards a low-carbon energy system.