Fossil fuel consumption for electricity generation in the building sector is at an all-time high in line with the country’s economic growth. This scenario will increase the global CO2 emissions and large carbon footprints, thus leading to global warming. In recent years, most of the research related to the building sector has focused on the development of new techniques to reduce buildings’ energy consumption through energy conservation, energy efficiency, and the implementation of renewable energy technologies. The introduction of photovoltaic (PV) technology has become the most prominent renewable energy (RE) that can be integrated into building components. Even though the Building Integrated Photovoltaic (BIPV) has been available for decades, but its implementation in Southeast Asian countries has not gained widespread acceptance compared to European countries and other parts of Asia. This paper aims to investigate the effects and challenges of BIPV implementation in Southeast Asian Countries (Cambodia, Indonesia, Laos, Malaysia, Singapore, Thailand, Vietnam, and the Philippines), focusing on climate effects, the initial cost of PV technology, government policies, and initiatives. An in-depth literature review from past research, policies, and reports taken between 2016 to 2021 has been conducted and found that the environmental parameters directly influence the performance of BIPV systems and affect efficiency. This study pointed at Feed-in Tariff (FiT), policies and initiatives offered by the government in Southeast Asian countries are not beneficial and discourage building owners to adopt the BIPV technology or any other RE technology. Governments should revise the current policies to promote and attract more building owners to take part in the efforts to minimize CO2 emissions from the building industry.