The properties of indium‐tin oxide (ITO)/CdTe junction solar cells prepared by rf sputtering of ITO onP‐doped CdTe single‐crystal substrates have been investigated through measurements of the electrical and photovoltaic properties of ITO/CdTe and In/CdTe junctions, and of electron beam induced currents (EBIC) in ITO/CdTe junctions. In addition, surface properties of CdTe related to the sputtering process were investigated as a function of sputter etching and thermal oxidation using the techniques of surface photovoltage and photoluminescence. ITO/CdTe cells prepared by this sputtering method consist of ann+‐ITO/n‐CdTe/p‐CdTe buried homojunction with about a 1‐&mgr;m‐thickn‐type CdTe layer formed by heating of the surface of the CdTe during sputtering. Solar efficiencies up to 8% have been observed withV0c=0.82 V andJsc=14.5 mA/cm2. The chief degradation mechanism involves a decrease inV0cwith a transformation of the buried homojunction structure to an actual ITO/CdTe heterojunction.