With the increasingly serious climate change and energy crisis, photovoltaic (PV) generation, as one of the most important renewable energy resources, has experienced dramatic growth worldwide due to its environmental friendliness. However, the uncertainty and intermittency of PV bring inevitable challenges to power systems. With the rapid development of distributed PV and the continuous evolution of the electricity market, increasingly high penetration levels of distributed PV generation have led to a series of problems in power system operations, such as voltage fluctuation, frequency deviation, etc. The market participation of distributed PV needs to be solved. Reasonable market participation form, market mechanism and bidding strategies are vital to the development of distributed PV in the electricity market. This paper comprehensively reviews the development and impacts of distributed PV in the electricity market and discusses the relevant market modes and bidding strategies in detail.