PURPOSE: To obtain a photovoltaic element and its manufacturing method wherein recombination of light pumping carrier is prevented, and an open voltage and carrier range of positive holes are improved, and provide a power generating system using the element.

CONSTITUTION: The photovoltaic element is constituted by laminating the following in order on N(P)-type substrate 102 composed of polycrystalline silicon or single crystal silicon; a first P(N)-type layer 103 constituted of microcrystal silicon or polycrystalline silicon or single crystal silicon, an N(P)-type layer 4 composed of non-single crystal semiconductor material, an I-type layer 105 composed of non-single crystal semiconductor material, and a second P(N) layer 106 composed of non-single crystal semiconductor material. The I-type layer contains at least silicon atoms and carbon atoms, and the band gap smoothly changes in the layer thickness direction. The position of the minimum value of the band gap is biased to the second P-type layer (P-type layer) 106 side from the center position of the layer thickness.