Bismuth oxyiodide (BiOI) is expected to be promising material for photovoltaic devices since it has good activity under the visible range. Here, we studied the annealing treatment on BiOI and its effect on the photovoltaic application. Firstly, the synthesized BiOI from Bi(NO3)3 and KI was annealed at varied temperatures (100–550 °C). The structural investigation by X-ray diffraction and Raman spectroscopy analysis was supported with morphology and optical analysis by scanning electron microscope (SEM) and UV-Visible spectroscopy. Due to the heating treatment, it could result in iodine-deficient bismuth-based materials, namely Bi7O9I3, Bi5O7I, and β-Bi2O3. Secondly, the photovoltaic test measurement was performed by solar simulator air mass (AM) 1.5 illumination which presented the current-voltage curve from each material. The enhancement of photovoltaic performance was given by the increase of temperature up to 300 °C. At that temperature, the performance of the device which consisted of Bi7O9I3 achieved three times higher efficiency than the annealed parent BiOI at 100 °C. Hence, the structural changing owing to the oxygen addition to BiOI structure had an impact on the photoelectrochemical cell. Based on this work, it is possible to attempt BiOI derivation with suitable holes and electron transport layers for better photovoltaic performance.