One of the major loss mechanisms leading to low energy conversion efficiencies of solar cells is the thermalization of charge carriers generated by the absorption of high-energy photons. These losses can largely be reduced in a solar cell if more than one electron-hole pair can be generated per incident photon. A method to realize multiple electron-hole pair generation per incident photon is proposed in this article. Incident photons with energies larger than twice the band gap of the solar cell are absorbed by a luminescence converter, which transforms them into two or more lower energy photons. The theoretical efficiency limit of this system for nonconcentrated sunlight is determined as a function of the solar cell's band gap using detailed balance calculations. It is shown that a maximum conversion efficiency of 39.63% can be achieved for a 6000 K blackbody spectrum and for a luminescence converter with one intermediate level. This is a substantial improvement over the limiting efficiency of 30.9%, which a solar cell exposed directly to nonconcentrated radiation may have under the same assumption of radiative recombination only. (C) 2002 American Institute of Physics.