After a focused effort over the last decade, order‐of‐magnitude improvements in doping and electro‐optical characteristics (radiative efficiency, carrier lifetime, and passivation) have been reported for polycrystalline CdSeTe solar cells. Surprisingly, this did not result in higher solar cell voltages regardless of device contacting layers, absorber grading profiles, and other changes in device architecture. From detailed evaluation of radiative emission and carrier dynamics in CdSeTe heterostructures and devices, it is shown that the complexity introduced to the absorber to achieve lifetime and passivation metrics resulted in charge carrier trapping, which now negatively affects CdSeTe absorbers. It is found that the defects with activation energy Ea ≈ 0.14‐0.22 eV dominate radiative emission and carrier dynamics in undoped CdSeTe, and electronic potential fluctuations with the amplitude γ ≈ 45–60 meV are present in As‐doped CdSeTe/CdTe. Because of potential fluctuations, radiative voltage is reduced by ≈ −100 mV, to = 1020‐1050 mV (for 1.4 eV bandgap). For record‐efficiency solar cells with VOC ≥900 mV, radiative and nonradiative recombination voltage losses are comparable, and future research needs to focus on reducing dopant compensation which causes potential fluctuations. This represents a paradigm shift for CdTe solar cells, with non‐radiative bulk recombination no longer representing a dominant voltage loss pathway.