With the semiconductor bulk properties reaching target values for highly efficient solar cells, efforts are applied to reduce losses at solar cell interfaces and contacts. Advances in understanding back contacts in thin‐film polycrystalline CdTe solar cells, a leading thin‐film PV technology, are reported. By using X‐Ray photoelectron spectroscopy, Kelvin probe spectroscopy, time‐ and energy‐resolved photoluminescence, defects at the back contact are analyzed. Densities of recombination centers and charged defects that induce near‐back‐contact band bending, both resulting in recombination losses, were estimated. Electro‐optical and surface analysis results are integrated into a device model, simulating the performance of CdSeTe/CdTe solar cells with 902 mV open circuit voltage.