A heterostructured cathode having a graded bandgap window-layer is proposed in this study to improve the performance of photon-enhanced thermionic emission (PETE) solar energy converters. A model based on a one-dimensional steady-state equation is developed to analyze the characteristics of the proposed device. This model is used to calculate the conversion efficiency of a PETE device with an AlxGa1-xAs/GaAs cathode. The built-in electric field induced by the bandgap gradation in the window-layer is shown to improve the efficiency because of the reduction of contact surface recombination losses and efficient collection of photogenerated electrons. This field is unaffected by temperature variation, and the improvement of efficiency is sustained at elevated temperatures. The effect of window-layer parameters and cathode thickness on efficiency is discussed. We also show that the efficiency maximizes at lower temperatures for cathodes with lower electron affinities. Moreover an optimal value exists for anode work function at a given anode temperature, thus providing guidance for the optimum design of barrier conditions for both cathode and anode. (C) 2014 Elsevier B.V. All rights reserved.