In a traditional solid-state semiconductor, a solar cell is made from two doped crystals, one doped with n-type impurities (n-type semiconductor), which add additional free conduction band electrons, and the other doped with p-type impurities (p-type semiconductor), which add additional electron holes. When placed in contact, some of the electrons in the n-type portion flow into the p-type to "fill in" the missing electrons, also known as electron holes. Eventually enough electrons will flow across the boundary to equalize the Fermi levels of the two materials. The result is a region at the interface, the p–n junction, where charge carriers are depleted and/or accumulated on each side of the interface. In silicon, this transfer of electrons produces a potential barrier of about 0.6 to 0.7 eV.
When placed in the sun, photons of the sunlight can excite electrons on the p-type side of the semiconductor, a process known as photoexcitation. In silicon, sunlight can provide enough energy to push an electron out of the lower-energy valence band into the higher-energy conduction band. As the name implies, electrons in the conduction band are free to move about the silicon. When a load is placed across the cell as a whole, these electrons will flow out of the p-type side into the n-type side, lose energy while moving through the external circuit, and then flow back into the p-type material where they can once again re-combine with the valence-band hole they left behind. In this way, sunlight creates an electric current.
In any semiconductor, the band gap means that only photons with that amount of energy, or more, will contribute to producing a current. In the case of silicon, the majority of visible light from red to violet has sufficient energy to make this happen. Unfortunately higher energy photons, those at the blue and violet end of the spectrum, have more than enough energy to cross the band gap; although some of this extra energy is transferred into the electrons, the majority of it is wasted as heat. Another issue is that in order to have a reasonable chance of capturing a photon, the n-type layer has to be fairly thick. This also increases the chance that a freshly ejected electron will meet up with a previously created hole in the material before reaching the p–n junction. These effects produce an upper limit on the efficiency of silicon solar cells, currently around 20% for common modules and up to 27.1% for the best laboratory cells (33.16% is the theoretical maximum efficiency for single band gap solar cells, see Shockley–Queisser limit.).
By far the biggest problem with the conventional approach is cost; solar cells require a relatively thick layer of doped silicon in order to have reasonable photon capture rates, and silicon processing is expensive. There have been a number of different approaches to reduce this cost over the last decade, notably the thin-film approaches, but to date they have seen limited application due to a variety of practical problems. Another line of research has been to dramatically improve efficiency through the multi-junction approach, although these cells are very high cost and suitable only for large commercial deployments. In general terms the types of cells suitable for rooftop deployment have not changed significantly in efficiency, although costs have dropped somewhat due to increased supply.