When a photon hits a piece of semiconductor, one of three things can happen:
# The photon can pass straight through the semiconductor — this (generally) happens for lower energy photons.
# The photon can reflect off the surface.
# The photon can be absorbed by the semiconductor if the photon energy is higher than the band gap value. This generates an electron-hole pair and sometimes heat depending on the band structure.
When a photon is absorbed, its energy is given to an electron in the crystal lattice. Usually this electron is in the valence band. The energy given to the electron by the photon "excites" it into the conduction band where it is free to move around within the semiconductor. The network of covalent bonds that the electron was previously a part of now has one fewer electron. This is known as a hole, and it has positive charge. The presence of a missing covalent bond allows the bonded electrons of neighboring atoms to move into the "hole", leaving another hole behind, thus propagating holes throughout the lattice in the opposite direction to the movement of the negatively electrons.  It can be said that photons absorbed in the semiconductor create electron-hole pairs.
A photon only needs to have energy greater than that of the band gap in order to excite an electron from the valence band into the conduction band. However, the solar frequency spectrum approximates a black body spectrum at about 5,800 K, and as such, much of the solar radiation reaching the Earth is composed of photons with energies greater than the band gap of silicon (1.12eV), which is near to the ideal value for a terrestrial solar cell (1.4eV). These higher energy photons will be absorbed by a silicon solar cell, but the difference in energy between these photons and the silicon band gap is converted into heat (via lattice vibrations — called phonons) rather than into usable electrical energy.