A water-soluble acid oxidized multiwall carbon nanotube ͑o-MWCNTs͒-polythiophene composite for bilayer photovoltaics is reported. Discrete heterojunction photovoltaic cells utilizing this nanocomposite material as the donor layer exhibit a ϳ20% increase in fill factor and commensurate increase in power conversion efficiency as compared to cells without o-MWCNTs. Crucially o-MWCNTs are incorporated into the cell structure using an environmentally compatible solvent without complicating the process of device fabrication. © 2006 American Institute of Physics. ͓DOI: 10.1063/1.2356115͔In recent years a great deal of research effort has focused on the development of organic and hybrid organic/inorganic photovoltaics. 1 The principal motivation is to produce a low cost, renewable energy source which will help to solve the world's looming energy crisis. Progress towards achieving the power conversion efficiencies required for commercial viability has been rapid. 1 However, today's most efficient devices-which are invariably processed from solutionrequire the use of environmentally damaging solvents in the fabrication process. 2,3 In this letter we report a nanocomposite comprising a homogeneous blend of acid oxidized multiwall carbon nanotubes ͑o-MWCNTs͒ and the water-soluble polythiophene, sodium poly͓2-͑3-thienyl͒-ethoxy-4-butylsulfonate͔ ͑PTEBS͒. The utility of this material as the donor layer in discrete heterojunction photovoltaic cells employing a C 60 acceptor is also reported. In this context, o-MWCNTs facilitate the extraction of positive charge carriers, reducing cell series resistance and increasing cell fill factor, resulting in a significant increase in power conversion efficiency as compared to cells without o-MWCNTs. Importantly, water is used as the solvent to process the nanocomposite which greatly increases the environmental compatibility of the fabrication process. Furthermore, o-MWCNTs are integrated into the cell structure without complicating the process of cell fabrication.Water-soluble thiophene was purchased from American Dye Source Inc. 4 Multiwall carbon nanotubes ͑Ͼ90% nanotube purity͒ grown by chemical vapor deposition were obtained commercially ͑Nanocyl͒ and used as received. Stable dispersions of o-MWCNTs in deionized water were prepared by ultrasonically dispersing carbon nanotubes in a 3:1 mixture of concentrated sulfuric and nitric acids and refluxing at 130°C for 60 min before diluting with HPLC grade deionized water. The resulting dispersion was centrifuged and the acid supernatant decanted off. The remaining solid was repeatedly washed with HPLC grade water over a 50 nm polycarbonate filter until the washings were pH 6-7. To determine the o-MWCNTs loading, a known volume of the stock solution was completely dried and weighed. The typical diameter and length of the o-MWCNTs after acid treatment were confirmed using transmission electron microscopy ͑TEM͒ to be 10 nm and several microns, respectively.All devices were fabricated on indium tin oxide ͑ITO͒ coated glass ͑Merck͒ with a nomin...