Herein, the role of bulk/interface defects and their impact on the performance of novel solar cell device structure p‐Si/n‐CdS/ALD‐ZnO (atomic layer deposited zinc oxide) heterojunction solar cells are shown. To calculate all important parameters and connect both types of defects with the performance of the solar cell, a theoretical model to simulate using well developed, established, and globally popular SCAPS‐1D simulation tool is developed. The different types of optimized simulation parameters that improved the performance of the solar cell have been calculated using bulk defects (p‐Si absorber), interfacial defects (p‐Si/n‐CdS interface), emitter layer (n‐CdS) thickness, and window layer (ALD‐ZnO) thickness. A further effect of incident radiation on the quantum efficiency and the spectral response has been plotted along with the I–V characteristics of the proposed solar cell. Based on the proposed simulation and comparing with the existing experimental and simulation results for similar combinations of the solar cell, this detailed study suggests that the highest efficiency η = 19.97%, fill factor = 83.37% with open circuit voltage = 635.3 mV, and short circuit current = 37.71 mA cm−2 can be achieved. Finally, the obtained performance parameters are best in class with the tabulated existing ones.