The prospects of scaling current photovoltaic technologies to terawatt levels remain uncertain. All-oxide photovoltaics could open rapidly scalable manufacturing routes, if only oxide materials with suitable electronic and optical properties were developed. A potential candidate material is tin monoxide (SnO), which has exceptional doping and transport properties among oxides, but suffers from a low absorption coefficient due to its strongly indirect band gap. Here, we address this shortcoming of SnO by band-structure engineering through isovalent but heterostructural alloying with divalent cations (Mg, Ca, Sr, Zn). Using first-principles calculations, we show that suitable band gaps and optical properties close to that of direct semiconductors are achievable in such SnO based alloys. Due to the defect tolerant electronic structure of SnO, the dispersive band-structure features and comparatively small effective masses are preserved in the alloys. Initial Sn 1−x Zn x O thin films deposited by sputtering exhibit crystal structure and optical properties in accord with the theoretical predictions, which confirms the feasibility of the alloying approach. Thus, the implications of this work are important not only for terawatt scale photovoltaics, but also for other large-scale energy technologies where defect-tolerant semiconductors with high quality electronic properties are required.