Thin films of Si nanocrystals (Si NCs) embedded in a silicon carbide (SiC) matrix (Si-NC:SiC) were prepared by alternating deposition of Si-rich silicon carbide (Si1 xCx) and near-stoichiometric SiC mutilayers (Si1 xCx/SiC) using magnetron cosputtering followed by a post-deposition anneal. Transmission electron microscopy and Raman spectroscopy revealed that the Si NCs were clearly established, with sizes in the range of 3–5 nm. Optical studies showed an increase in the optical band gap after annealing from 1.4 eV (as-deposited) to 2.0 eV (annealed at 1100 1C). P-type Si-NC:SiC/n-type crystalline silicon (c-Si) heterojunction (HJ) devices were fabricated and their electrical and photovoltaic properties were characterized. The diode showed a good rectification ratio of 1.0 10 at the bias voltage of 71.0V at 298K. The diode ideality factor and junction built-in potential deduced from current–voltage and capacitance–voltage plots are 1.24 and 0.72V, respectively. Illuminated I–V properties showed that the 1-sun open-circuit voltage, short-circuit current density and fill factor of a typical HJ solar cell were 463mV, 19mA/cm and 53%, respectively. The external quantum efficiency and internal quantum efficiency showed a higher blue response than that of a conventional c-Si homojunction solar cell. Factors limiting the cell’s performance are discussed. r 2007 Elsevier B.V. All rights reserved.