Typical photovoltaics work by creating a p–n junction near the front surface of a thin semiconductor material. When photons above the bandgap energy of the material hit atoms within the bulk lower layer, below the junction, an electron is photoexcited and becomes free of its atom. The junction creates an electric field that accelerates the electron forward within the cell until it passes the junction and is free to move to the thin electrodes patterned on the surface. Connecting a wire from the front to the rear allows the electrons to flow back into the bulk and complete the circuit.
Photons with less energy than the bandgap do not eject electrons. Photons with energy above the bandgap will eject higher-energy electrons which tend to thermalize within the material and lose their extra energy as heat. If the cell's bandgap is raised, the electrons that are emitted will have higher energy when they reach the junction and thus result in a higher voltage, but this will reduce the number of electrons emitted as more photons will be below the bandgap energy and thus generate a lower current. As electrical power is the product of voltage and current, there is a sweet spot where the total output is maximized.
Terrestrial solar radiation is typically characterized by a standard known as Air Mass 1.5, or AM1.5. This is very close to 1,000 W of energy per square meter at an apparent temperature of 5780 K. At this temperature, about half of all the energy reaching the surface is in the infrared. Based on this temperature, energy production is maximized when the bandgap is about 1.4 eV, in the near infrared. This just happens to be very close to the bandgap in doped silicon, at 1.1 eV, which makes solar PV inexpensive to produce.
This means that all of the energy in the infrared and lower, about half of AM1.5, goes to waste. There has been continuing research into cells that are made of several different layers, each with a different bandgap, and thus tuned to a different part of the solar spectrum. , cells with overall efficiencies in the range of 40% are commercially available, although they are extremely expensive and have not seen widespread use outside of specific roles like powering spacecraft, where cost is not a significant consideration.